Waterco Limited (Waterco) – a global water treatment and pool equipment manufacturer – is set to acquire an Australian pump company. The transaction is expected to be completed on 31 August 2023 with a sale price of $64.9 million.
The acquisition of Davey Water Products (Davey) – a subsidiary of GUD Holdings Limited (GUD) – is set to cement Waterco as the largest Australian-owned and operated entity in the water industry.
With a combined 131-year history in the multi-billion-dollar global water industry, the acquisition will enable Waterco to expand its reach while providing increased market presence and growth opportunities for shareholders.
Waterco Founder, Executive Chairman and Chief Executive Officer, Soon Sinn Goh, said, “The acquisition aligns 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.”
Waterco said the acquisition brings together complementary strengths and capabilities that will benefit customers across various sectors.
“One outcome of the acquisition will be an increased share of global water markets across pool and spa, water transfer and water treatment categories,” Mr Goh said.
Waterco noted growth opportunities including leveraging geographical strengths across developing markets in Europe, USA, Africa, and the Middle East.
“Waterco’s extensive distribution into North America and the European Union will further enhance Davey’s pre-existing reach in Europe. Another benefit is that both companies will have access to each other’s customer bases as products are complementary,” Mr Goh said.
The company said that the strategic benefits of Waterco Limited purchasing Davey Water Products include market expansion, diversification of product portfolio, increased research and development capabilities, economies of scale, local manufacturing advantages, synergy and cost-saving opportunities, enhanced brand reputation, access to new technologies and intellectual property, financial strength and alignment with long-term strategic vision.
“Overall, the acquisition of Davey Water Products offers a range of strategic benefits that can help Waterco consolidate its position as a market leader and create value for its stakeholders, including employees, customers, and shareholders,” Mr Goh said.
Featured image: Waterco office building. Courtesy of Waterco.
