Watts Water Celebrates Successful 2014
NORTH ANDOVER, MASS. — When you celebrate 140 years in business, you have to be doing something right. Founded in 1874 in Lawrence, Mass., Watts Water is proud to be one of the oldest manufacturing companies in the Merrimack Valley of Massachusetts, and is now a $1.47 billion leader in the global water industry. Its subsidiaries provide solutions in five key areas: plumbing and flow control, HVAC, water reuse and drainage, water quality and conditioning, and municipal waterworks.
And now you can add water heating to that portfolio with the recent acquisition of AERCO International Inc., a provider of commercial tankless water heaters and commercial high-efficiency boilers in North America.
“We already offer many products in the boiler room, and now with the acquisition of AERCO, we have the boiler, too; AERCO is a great fit and strategically important to our business,” said Greg Gyorda, director of marketing communications, Watts Water Technologies.
In fact, for the past three years, Watts Water has been looking at complementary product offerings outside of its core plumbing and HVAC product families. By acquiring AERCO, Watts Water has a strong foundation within the heat source arena and an opportunity to grow the platform over time. By extending the Watts Water product offering back to the heat source, the company is able to leverage its existing portfolio.
“AERCO is a very successful North America-focused business, and we see an opportunity to grow the business worldwide,” said Gyorda.
“Acquiring AERCO will allow us to expand our product breadth to the strategically important adjacency of heat and hot water offerings,” said Robert Pagano Jr., chief executive officer, Watts Water Technologies. “AERCO is a recognized leader in the fast growing market for high efficiency boilers and hot water heaters, with solid operating margins and attractive opportunities to continue its strong growth. AERCO’s products complement our existing portfolio, strengthening our ability to provide a total solution for our customers. With our existing international footprint, we also anticipate expanding AERCO’s worldwide presence.”
“AERCO shares Watts Water commitment to growth for all of its customers and partners, and this acquisition joins two great companies that share a similar set of values and a strategic vision,” said AERCO chief executive officer Ervin Cash. “We are impressed with the strength of the Watts Water management team and look forward to working with them to capture the opportunities ahead of us. This partnership will allow both companies to offer our customers complete solutions, and allows AERCO even greater opportunities for growth. Together, we create a balanced portfolio of products and services that can be tailored to best serve the evolving needs of our global customers.”
The acquisition is symbolic of an Watts Water overarching company philosophy of being a “one-stop” shop or single source provider of plumbing and hydronics products.
“We believe we can best serve our customers and build important relationships by providing a broad array of products that customers need,” said Gyorda. “One of our key strengths as a company is our unique breadth of products and systems. “We offer customers the convenience of ‘one-stop’ shopping, and we help simplify the choices for contractors,” added Gyorda.