Waterco Limited, a global manufacturer of water treatment equipment and pool products, has announced the acquisition of Davey Water Products. This move cements its position as Australia’s largest water company.
Davey Water Products, a subsidiary company of GUD Holdings Limited. The sale is estimated to close on September 1, 2023 for $64.9 million.
Waterco can now expand its market reach and provide growth opportunities to shareholders. The acquisition is based on a combined history of 131 years in the multibillion dollar global water industry.
Soon Sinn Goh, Waterco’s founder, chief executive, and executive chairman, says that the acquisition is in line with Waterco’s long-term vision to become a global leader of the water technology sector.
He says that the new system allows the company to benefit from emerging market opportunities and positions it for sustainable growth.
Waterco customers in various sectors will benefit from the acquisition, which brings together complementary strengths.
Goh states that the acquisition of Aquatech will result in a greater share of the global water market across categories such as pool and spas, water transfer, and water treatment.
The growth opportunities are based on leveraging geographic strengths in developing markets across Europe, the USA, Africa, and the Middle East.
He says that “Waterco’s extensive distribution in North America and Europe will further enhance Davey’s existing reach in Europe.” Both companies will be able to access each other’s customers as their products are complementary.
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Benefits of strategic acquisition
Research and Development Capabilities: The combined research and product development expertise of the two companies will accelerate innovation and encourage the development of differentiated premium products. Davey Australia has a large engineering and product development team with a focus on energy efficiency, water scarcity and smart connected products.
Local manufacturing advantage. The acquisition of Davey will bring the benefit of local production, which will reduce Waterco’s sole dependency on its manufacturing operations located in Malaysia. It also improves supply chain resilience. Davey’s manufacturing facility in Scoresby is located in Victoria and covers 2700sqm of production space as well as a raw materials warehouse covering 4700sqm.
Brand reputation enhanced: Davey, a brand that was established in 1934 and is well-respected in Australia and New Zealand, will boost Waterco’s global reputation on existing and new markets.
Waterco can leverage Davey’s patents, proprietary technology, and intellectual properties to enhance its product offering and gain an edge over competitors.
Financial strength: Waterco has minimal or zero debt before acquiring Davey. The debt level is still low despite the acquisition. This indicates a strong financial state. Waterco will be the largest Australian manufacturer of water treatment and transfer products with a combined revenue forecast for FY24 exceeding $200 million.
Long-term vision aligned: The acquisition is in line with Waterco’s long-term vision to become a global leader of the water technology sector. The acquisition positions Waterco for sustainable growth, and allows it to capitalize on emerging market opportunities.
Goh says that the acquisition of Davey Water Products can offer a number of strategic advantages to Waterco, which will help it consolidate its market leadership and create value for all its stakeholders, such as employees, customers and shareholders.
From PVC Pipe Distributor to Manufacturing and Technological Powerhouse
Waterco was founded in 1981 in Sydney, Australia with one pool pump store. Since then, the brand has become known for its filtration, sanitisation, and aquaculture innovations.
Waterco established Swimart in 1983. It is one of the oldest and largest retail franchise networks of swimming pools and spas in Australasia. The network has 75 stores, and over 220 mobile vans that service Australia and New Zealand.
The company, listed on the Australian Securities Exchange (ASX:WAT), was founded in 1989 and has evolved into a manufacturing and technological powerhouse. Its products are more efficient and less expensive to run and maintain.
Waterco Ltd purchases Davey Water Products at a price of $65 Million appeared first on SPLASH Magazine.
