SYDNEY, AUSTRALIA: Waterco Limited, a global water treatment and pool equipment manufacturer, has announced that it has signed a deal to buy Davey Water Products, a subsidiary of GUD Holdings Limited, for $65 million. The transaction is expected to be completed on 1 September 2023.
Waterco, which is listed on the Australian Securities Exchange, said the acquisition would create a diversified group with a focus on complementary product strengths. Waterco is a leader in pool systems, filtration and water treatment systems, while Davey is the leading manufacturer of residential and commercial pumps in Australia.
The acquisition will also enable Waterco to expand its presence in new markets and regions where Davey has a strong foothold, such as Europe, USA, Middle East and Africa. The merged businesses will have a share of global water treatment markets across pool, water transfer and water treatment categories.
Waterco founder, executive chairman and chief executive officer, Soon Sinn Goh, said the acquisition aligned with Waterco’s long-term strategic vision of becoming a global leader in the water technology industry. “It positions the company for sustainable growth and enables it to take advantage of emerging opportunities in the market,” he said.
Davey is an established brand offering a range of water related services from water transfer, conservation, treatment and filtration including pumps, pool pumps and chlorinators. Davey also has unique patents, proprietary technologies and intellectual property that can be leveraged by Waterco to strengthen its product offerings and gain a competitive edge.
The purchase price payable to GUD upon completion of the acquisition will be approximately $64.9 million subject to certain adjustments pursuant to the terms of the SSA. The company will finance the acquisition through bank loans. The acquisition does not require security holders’ approval and there are no changes in the composition of the board and management of Waterco as a result of the acquisition.
The acquisition of Davey is expected to add approximately $120 million per annum to the company’s sales revenue. Waterco said the acquisition would also bring the added benefit of local manufacturing, reducing Waterco’s sole dependence on its manufacturing operations in Malaysia and improving supply chain resilience. Davey has a manufacturing plant based in Scoresby, Victoria.