Water filtration and sanitisation company Waterco has announced that it will acquire Davey Water Products from GUD Holdings for $64.9 million, with the sale expected to be complete on August 31.
In a statement on Monday, Waterco cited benefits including expansion of its international reach, gaining a complementary product and customer base, strengthened R&D, and having production facilities in addition to a current “sole dependence” on Malaysia. Waterco manufactures at Selangor.
“The acquisition aligns with Waterco’s long-term strategic vision of becoming a global leader in the water technology industry,” said Waterco Founder and Executive Chairman Soon Sinn Goh.
Goh founded the company as Dronaco in 1981, distributing PVC pipe and fittings for the pool and spa market. It became Waterco in 1987 and listed on the ASX in 1989.
The company designs, makes and distributes products for the pool, spa, aquaculture and water purification sectors.
Davey was established in 1934 and has its head office and manufacturing in Melbourne, Australia, with branches in New Zealand and France, and representation in the Middle East and USA.
Waterco has branches in Australia, New Zealand, Malaysia, China, The United Kingdom, United States of America, Canada and Indonesia.
“Waterco’s extensive distribution into North America and the European Union will further enhance Davey’s pre-existing reach in Europe,” added Goh.
The statement from Waterco also cited benefits from combined expertise in R&D, with Davey having “a large team in Australia involved in engineering and product development with a strong focus on water scarcity, energy efficiency, and smart connected products.”