Watts Water Technologies Inc. to Acquire Josam Company

Rhea-AI Summary

Watts Water Technologies, Inc. (NYSE: WTS) has entered into a definitive agreement to acquire Josam Company, a leading provider of drainage and plumbing products. Josam's annualized sales are approximately $35 million. The acquisition is expected to drive growth and provide increased cross-selling opportunities for Watts. The transaction is subject to customary closing conditions and is expected to close in January 2024.

NORTH ANDOVER, Mass.--(BUSINESS WIRE)-- Watts Water Technologies, Inc. (NYSE: WTS) (“Watts”) – through its subsidiaries, one of the world’s leading manufacturers and providers of plumbing, heating and water quality products and solutions – today announced that it has entered into a definitive agreement to acquire Josam Company (“Josam”), a leading provider and manufacturer of drainage and plumbing products for over 100 years. The company offers a comprehensive portfolio of high-quality customized products to a diverse customer base serving commercial, industrial, and multi-family end markets. Josam’s annualized sales are approximately $35 million.

Chief Executive Officer Robert J. Pagano Jr. commented, “Today’s acquisition is consistent with our established strategy and further positions Watts for growth. The addition of Josam’s innovative, specified products to our portfolio will allow us to offer our customers expanded capabilities and solutions. We expect that the company’s complementary sales networks and channel relationships will help drive growth and provide increased cross-selling opportunities. With a commitment to providing outstanding customer service, Josam is also a strong cultural fit for Watts. We look forward to welcoming the Josam team to Watts Water Technologies.”

President and CEO of Josam Company Scott Holloway Sr. stated, “Watts acquisition of Josam Company will provide tremendous opportunities for the continued growth of the Josam product lines. The resources that Watts offers are essential to taking the Josam product lines to the next level. The similarities in company culture, passion for success and their commitment to advancing the Josam legacy for years to come is a combination that is destined for long-term success.”

The transaction is subject to customary closing conditions and is expected to close in January 2024. Additional information regarding the transaction will be discussed during the Watts fourth quarter earnings call in February 2024.

About Watts Water Technologies, Inc.

Watts Water Technologies, Inc., through its family of companies, is a global manufacturer headquartered in the USA that provides one of the broadest plumbing, heating, and water quality product lines in the world. Watts Water companies and brands offer innovative plumbing, heating, and water quality solutions to control the efficiency, safety, and quality of water within commercial, residential, and industrial applications. For more information, visit www.watts.com.

About Josam

For over 100 years, Josam has manufactured drainage and plumbing products designed to the highest performance standards. Headquartered in Michigan City, Indiana, USA, Josam serves commercial, industrial, and multi-family building markets. For more information visit www.josam.com.

Forward-Looking Statements

In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Watts provides the following cautionary statement: This news release contains various forward-looking statements based on current expectations about important economic, political, and technological factors, among others, and are subject to risks and uncertainties, which could cause the actual results or events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. These include statements regarding estimates of future earnings and cash flows and expectations as to the closing of the transaction. Other uncertainties include, but are not limited to, general economic conditions, supply chain conditions and any related impact on costs and availability of materials, the ability to obtain regulatory approval without unexpected delays or conditions, integration of the acquired business in a timely and cost-effective manner, retention of supplier and customer relationships and key employees, and the ability to achieve synergies and cost savings in the amounts and within the time frames currently anticipated. Other risks and uncertainties that may materially affect Watts are described from time to time in its reports filed with the Securities and Exchange Commission, including Forms 10-K, 10-Q, and 8-K. Except to the extent required by law, Watts does not undertake and specifically declines any obligation to review or update any forward looking statements or to publicly announce the results of any revisions to any of such statements to reflect future events or developments or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231211268371/en/

Watts Water Technologies, Inc.

Diane McClintock

Senior Vice President FP&A and Investor Relations

Telephone: 978-689-6153

investorrelations@wattswater.com

Source: Watts Water Technologies, Inc

FAQ

What is Watts Water Technologies, Inc.'s ticker symbol?

Watts Water Technologies, Inc.'s ticker symbol is WTS.

What is the annualized sales of Josam Company?

Josam Company's annualized sales are approximately $35 million.

When is the expected closing date for the acquisition of Josam Company by Watts Water Technologies, Inc.?

The acquisition is expected to close in January 2024.

What are the expected benefits of the acquisition for Watts Water Technologies, Inc.?

The acquisition is expected to drive growth and provide increased cross-selling opportunities for Watts.