Hawkins, Inc. Expands Water Treatment Footprint with Acquisition of Water Guard, Inc. in North Carolina

Rhea-AI Summary

Hawkins Inc (Nasdaq: HWKN) has acquired Water Guard Inc, a water treatment chemicals and equipment distributor serving Virginia and the Carolinas since 1978. The acquisition provides Hawkins with its first location in North Carolina, supporting its East Coast expansion strategy. Water Guard's customers will benefit from expanded product offerings and additional resources while maintaining the company's commitment to outstanding products and services.

Positive

• Strategic expansion into North Carolina market
• Geographic expansion on the East Coast
• Access to established customer base in Virginia and the Carolinas
• Acquisition of a company with 45+ years of market presence

Negative

• None.

Insights

Financial Analyst

This strategic acquisition strengthens Hawkins' market position in water treatment chemicals with a significant East Coast expansion. Water Guard's established presence since 1978 provides immediate market access in North Carolina and neighboring states, offering both revenue synergies through expanded product offerings and operational synergies through enhanced distribution capabilities.

The deal aligns with Hawkins' growth strategy in the water treatment sector, which has been showing steady demand due to aging infrastructure and increasing water quality requirements. While financial terms weren't disclosed, the acquisition of a 45-year-old established business with strong local relationships should contribute positively to Hawkins' revenue stream and market penetration efforts in the Eastern United States.

Market Research Analyst

The water treatment chemicals market presents substantial growth opportunities, particularly in the Eastern United States where aging infrastructure and stringent regulations drive demand. This acquisition strategically positions Hawkins to capture market share in an underserved region, while inheriting Water Guard's established customer relationships and distribution network.

The deal's timing is opportune as the water treatment sector faces increasing regulatory pressures and environmental concerns, creating sustained demand for specialized chemical solutions. The combination of Hawkins' broader product portfolio with Water Guard's local market expertise should drive cross-selling opportunities and operational efficiencies.

ROSEVILLE, Minn., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Hawkins, Inc. (Nasdaq: HWKN), a leading specialty chemical and ingredients company, has completed the acquisition of the assets of Water Guard, Inc. Water Guard distributes water treatment chemicals and equipment for its customers in Virgina and the Carolinas.

“As we continue to grow our water treatment business, Water Guard brings us our first location in North Carolina and helps accelerate our expansion on the East Coast,” said Hawkins Chief Executive Officer Patrick H. Hawkins. “Water Guard has built a strong business that we have admired for years and that is well-connected with the local community. We intend to maintain and expand those connections and look forward to a bright future together.”

Jim Moyer, President and Owner of Water Guard, Inc. said, “Water Guard has been proud to serve Virginia and the Carolinas since 1978 and we’re glad to team with Hawkins to ensure the company will continue to grow and succeed in this industry. Water Guard would not be where it is today without its dedicated employees and loyal customer base. Teaming with Hawkins offers Water Guard customers expanded product offerings and additional resources. Most importantly, Hawkins shares our unwavering commitment by offering outstanding products and services, a principle we have upheld for over 45 years.”

Mr. Hawkins concluded, “On behalf of the entire Hawkins organization, I welcome the Water Guard team to the Hawkins family and look forward to our continued growth together.”

About Hawkins, Inc.

Hawkins, Inc. was founded in 1938 and is a leading specialty chemical and ingredients company that formulates, distributes, blends, and manufactures products for its Industrial, Water Treatment, and Health & Nutrition customers. Headquartered in Roseville, Minnesota, the Company has 61 facilities in 28 states and creates value for its customers through superb customer service and support, quality products and personalized applications. Hawkins, Inc. generated $919 million of revenue in fiscal 2024 and has approximately 1,000 employees. For more information, including registering to receive email alerts, please visit www.hawkinsinc.com/investors.

FAQ

What company did Hawkins Inc (HWKN) acquire in October 2024?

Hawkins Inc acquired Water Guard Inc, a water treatment chemicals and equipment distributor serving Virginia and the Carolinas.

How does the Water Guard acquisition benefit Hawkins (HWKN) expansion plans?

The acquisition provides Hawkins with its first location in North Carolina and accelerates its expansion on the East Coast.

How long has Water Guard been operating before the Hawkins (HWKN) acquisition?

Water Guard has been serving Virginia and the Carolinas since 1978, operating for over 45 years.

What markets does the acquired Water Guard serve for Hawkins (HWKN)?

Water Guard serves customers in Virginia and the Carolinas, distributing water treatment chemicals and equipment.