Watts Water Technologies announces sale of certain non-core product lines
July 29, 2015
Watts Water Technologies has announced the signing of a definitive agreement with Sioux Chief Mfg. Co. to sell certain assets related to Watts’ brass fittings, brass and tubular, and vinyl tubing product lines. The selling price approximates $35.5 million and the transaction is expected to close by the end of the third quarter. The consummation of the sale with Sioux Chief is subject to customary closing conditions.
Robert J. Pagano Jr., chief executive officer, commented, “We are pleased with the progress we made in the second quarter. Despite known sales headwinds, we expanded adjusted operating margins in the quarter by 60 basis points through favorable product mix, stronger productivity and continued benefits from cost savings initiatives. As expected, our top line growth remained challenged by weak EMEA activity and slower than anticipated growth in the Americas. We continue to drive our transformation initiatives and today we announced an agreement to sell certain product lines to Sioux Chief. This transaction corresponds to Phase 1 of the Americas transformation effort. We expect next quarter to announce our roadmap for Phase 2 of the Americas transformation. Overall, we are pleased with transformation progress to date, which we believe should drive margin expansion in 2016 and beyond.”
Family run since 1957, Sioux Shief employs 450 people and manufactures over 6000 products. The company, which holds more than 30 U.S. patents, was recently featured on Fox Business Network’s Manufacturing Marvels. Watch the video.