Massachusetts-based
Watts Water Technologies, Inc., a manufacturer of plumbing, heating and water quality products, announced that it has entered into a definitive agreement to acquire Menomonee Falls-based
Bradley Corp. for $303 million.
Bradley Corp. is a manufacturer of commercial washroom and emergency safety products serving commercial, primarily institutional, and industrial end markets. Founded in 1921, the company has annual net sales of approximately $200 million.
Founded in 1874, Watts Water Technologies is a public company with $1.98 billion in annual sales. Its shares trade on the New York Stock Exchange under the ticker symbol WTS.
The net transaction value is approximately $268 million after adjusting for the estimated net present value of expected tax benefits of approximately $35 million, WWT said. The deal is subject to customary closing conditions and necessary regulatory approvals and is expected to close in the fourth quarter of this year, the company said.
“Today’s strategic acquisition delivers on our mission to improve comfort, safety and quality of life for people around the world,” said WWT chief executive officer
Robert J. Pagano Jr. “Bradley’s complementary portfolio will enable us to provide our customers with innovative water solutions, as it adds front-of-the-wall applications to our differentiated back-of-the-wall portfolio. We believe we can leverage the combined strengths of the two companies’ sales networks and channel relationships to facilitate cross selling and accelerate growth. With expanded end market access, increased product diversification, a strengthened go-to-market position and our highly experienced leadership team, Watts is well positioned to capture run-rate cost synergies, capitalize on growth opportunities and drive value creation.”
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Bryan Mullett[/caption]
Bryan Mullett, Bradley Corp.’s chairman and CEO, who will join WWT as president of Bradley, a new platform within WWT’s Americas region. Mullet represents the fifth generation of Mullett family ownership and leadership of Bradley Corp., which was founded by Louis Schleisinger, Gustav Grossenbach and Howard A. Mullett, who became president of the company in 1928.
“We are very pleased to have Bradley join Watts and see tremendous opportunity for incremental value creation,” Mullett said. “This will help us capture the benefits from our diverse range of innovative and customized front-of-the-wall solutions and Watts’ global reach, broad product portfolio and operational strength. I am looking forward to joining the management team to drive continued growth and support the integration of these two companies that have a combined 250-year heritage of experience and endurance in sustainable water products and solutions.”
“Watts and Bradley complement each other well in terms of culture and shared vision, with proven track records of delivering innovative, high-quality products and solutions along with outstanding customer service,” Pagano said. “We look forward to welcoming the Bradley team to Watts Water Technologies.”
