Hawkins, Inc. to add Six Water Treatment Locations with Acquisitions of Water Solutions Unlimited and Miami Products

Rhea-AI Summary

Hawkins, Inc. has completed the acquisition of Water Solutions Unlimited, Inc. and has entered into a definitive agreement to acquire the assets of The Miami Products & Chemical Company. The acquisition of Miami Products is expected to close within the coming weeks. The acquisitions are expected to grow Hawkins' Water Treatment footprint and increase annual proforma combined revenue to approximately $1 billion. The acquisitions will add over 90 employees to the Hawkins family and are expected to add $10 million in earnings before interest, taxes, depreciation, and amortization within three years.

Roseville, Minn, Oct. 30, 2023 (GLOBE NEWSWIRE) -- Hawkins, Inc. (Nasdaq: HWKN) a leading specialty chemical and ingredients company, announced today that it has completed the acquisition of Water Solutions Unlimited, Inc. (“Water Solutions”) and has entered into a definitive agreement to acquire the assets of The Miami Products & Chemical Company (“Miami Products”). Water Solutions mainly serves municipal customers in Indiana, Michigan, Illinois and Kentucky, and Miami Products manufactures bleach and serves the commercial pool business under the brand name Sanygen® and sells to municipal customers in Ohio and the surrounding region. The acquisition of Miami Products is expected to close within the coming weeks.

“These acquisitions continue to grow our Water Treatment footprint and provide an expanded product offering to our customers,” said President and Chief Executive Officer, Patrick H. Hawkins. “Hawkins’ annual proforma combined revenue is now expected be approximately $1 billion and the number of our Water Treatment locations we operate out of has increased from 40 to 46. Water Solutions and Miami Products are considered premier providers in the states they serve and, a lot like Hawkins, create value for their customers through superb customer service and support, quality products and customized applications. In addition, the bleach manufacturing capabilities that Miami Products brings to us in Southwestern Ohio will provide support to current Hawkins Water Treatment sites in that region.”

Mr. Hawkins continued, “The acquisitions of Water Solutions and Miami Products will add over 90 employees to the Hawkins family and is expected to add $10 million in earnings before interest, taxes, depreciation and amortization within three years. While we expect to release the quarter’s full results on November 1, as of the end of our second quarter, our outstanding debt was $60 million and we expect that even after these acquisitions our balance sheet will remain strong with our leverage ratio at approximately 1x.”

“On behalf of the entire Hawkins organization, I welcome the teams of Water Solutions and Miami Products to the Hawkins family and look forward to continued success together in the future,” Mr. Hawkins concluded.

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 will have 58 facilities in 26 states following these acquisitions and creates value for its customers through superb customer service and support, quality products and personalized applications. Hawkins, Inc. generated $935 million of revenue in fiscal 2023 and will have approximately 950 employees. For more information, including registering to receive email alerts, please visit www.hawkinsinc.com/investors.

FAQ

What did Hawkins, Inc. announce?

Hawkins, Inc. announced the completion of the acquisition of Water Solutions Unlimited, Inc. and a definitive agreement to acquire the assets of The Miami Products & Chemical Company.

What is the expected timeline for the acquisition of Miami Products?

The acquisition of Miami Products is expected to close within the coming weeks.

How will the acquisitions impact Hawkins' Water Treatment footprint?

The acquisitions are expected to grow Hawkins' Water Treatment footprint.

What is the expected increase in annual proforma combined revenue?

The acquisitions are expected to increase annual proforma combined revenue to approximately $1 billion.

How many employees will be added to the Hawkins family?

The acquisitions will add over 90 employees to the Hawkins family.

What is the expected impact on earnings before interest, taxes, depreciation, and amortization?

The acquisitions are expected to add $10 million in earnings before interest, taxes, depreciation, and amortization within three years.