Watts Water Technologies, Inc. announced the signing of a definitive agreement to acquire Dormont Manufacturing Co., located in Export, Pa., in a stock purchase transaction.
Watts Water Technologies' CEO, Patrick S. O'Keefe, said, "Dormont Manufacturing Co. is a leading provider of flexible stainless steel connectors for natural and liquid propane gas connectors. Dormont is a leader in commercial food service applications with a significant portion of North American sales and a leading position in the United Kingdom. Dormont also works with appliance OEM's to provide internal component assemblies and private label gas connectors, which are sold under the OEM brand with the appliance in multiple leading retails chains. Dormont also supplies residential gas connectors through multiple trade channels and home improvement retailers."
O'Keefe continued, "We are pleased with the acquisition of Dormont. Dormont is a well-managed company with a strong brand name. Dormont provides us access to several new channels of distribution while allowing us to offer a broader product line to our existing professional contractor customer base. Dormont's annual revenue for 2005 is expected to be approximately $56.5 million. Under the terms of the purchase agreement, Watts will pay $94.5 million in cash to purchase all of the outstanding stock of Dormont and the land on which Dormont's manufacturing facility is located, subject to a post-closing working capital adjustment. Watts intends to fund the transaction with borrowings under its credit facility and cash on hand."
The acquisition of Dormont is expected to close by December 31, 2005. The consummation of the acquisition is subject to customary closing conditions, including expiration of the waiting period under the Hart-Scott-Rodino Act.