Reliance Worldwide Corporation (RWC) has agreed to acquire Holman Industries, a leading manufacturer and distributor of branded plumbing and watering products in Australia, for $160 million.
In an ASX announcement, RWC said the price reflects seven times the amount of Holman’s LTM EBITDA before synergies, with the acquisition expected to be EPS accretive from the first full year of ownership.
With plants in Western Australia and Queensland, Holman is a leading producer and distributor of plumbing and watering products in Australia.
Approximately half of the company’s revenues are generated from sales of “water-out” plumbing products focused on drain, waste, and vent solutions, stormwater fittings, and PVC pressure fittings.
Holman’s remaining revenues are generated by sales of watering products including hose systems, fittings, timers, and garden products in retail and hardware.
The company has generated sales of $192 million and Adjusted EBITDA of $22.9 million in the 12w months ended 31 December 2023.
RWC estimated that Asia Pacific net sales for the current financial year ending 30 June 2024 will increase by approximately $50 million, reflecting Holman’s part-period contribution.
Wally Edwards, founder of Holman, has agreed to remain with the business for two years following the acquisition.
“Product innovation coupled with high levels of customer service have been instrumental in driving Holman’s growth. This is strongly aligned with RWC’s approach to growing its business,” said Heath Sharp, CEO of RWC.
“The acquisition of Holman provides RWC with immediate and substantial access to the Australian water-out segment, allowing us to strengthen our overall offering and be an even better partner to our core plumbing wholesalers in Australia. Entering the water-out market is a strategic priority in each of our three regions. While we have looked at other opportunities globally, Holman marks our first foray into this end market. We expect it will help lead and catalyse our approach in other markets globally.”
