Waterco, a global water treatment provider and pool equipment manufacturer, is set to acquire Davey Water Products, a subsidiary of GUD Holdings, for $64.9 million.
The acquisition, which is expected to be completed on 31 August, will cement Waterco’s position as the largest Australian-owned and operated entity in the water industry.
Through the acquisition, Waterco will have access to Davey’s local manufacturing capability, reducing its sole dependence on manufacturing operations in Malaysia and improving supply chain resilience. Local manufacturing also means shortened lead times from production to distribution, Waterco said in a media release.
Waterco said it will expand its presence in new markets and regions where Davey has a strong foothold, such as Australia, Europe, the Middle East, and the United States.
“Waterco’s extensive distribution into North America and the European Union will further enhance Davey’s pre-existing reach in Europe,” said Waterco Founder, Executive Chairman, and CEO Soon Sinn Goh. “Another benefit is that both companies will have access to each other’s customer bases as products are complementary.”
Davey’s acquisition will also diversify Waterco’s product portfolio, providing the latter with access to a broader range of products and technologies, including pumps for water transfer, conservation, filtration, and treatment needs, as well as a reputable range of water treatment products.
Waterco also plans to leverage Davey’s unique patents, proprietary technologies and intellectual property to strengthen its product offerings and gain a competitive advantage.
Dave Water Products’ acquisition aligns with Waterco’s long-term strategic vision of becoming a global leader in the water technology industry.
“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,” Goh said.
With a combined 131-year history of both companies, their projected combined revenue for fiscal year 2024 is expected to surpass $200 million, increasing Waterco’s overall financial strength and providing greater stability and flexibility for future growth initiatives.
