ASX 200

Waterco splashes out $64.9m to acquire Davey Water Products

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By Imelda Cotton - 
Waterco GUD ASX WAT GUD Davey Water Products

Swimming pool and water filtration company Waterco (ASX: WAT) is set to acquire Davey Water Products Pty Ltd from automotive aftermarket and water products specialist GUD Holdings (ASX: GUD).

The $64.9 million deal will be completed as part of a share sale agreement and does not require shareholder approval.

It is expected to add approximately $120 million per year to Waterco’s sales revenue figures.

The transaction is due for completion by 1 September.

Diversified group

The merger of Waterco and Davey is expected to build a diversified group with a focus on complementary products and opportunities to leverage geographical strengths across growing markets in Europe, the Middle East, Africa, Asia and the US.

The new business will have a share of global markets across the swimming pool, water transfer and water treatment categories.

Exit from water sector

GUD Holdings said the divestment of Davey signifies the group’s exit from the water sector and crystalises its ambition to be a pure play automotive business.

“Waterco is, in our view, the natural owner of Davey, and we are optimistic about the prospects for the combined business,” the company said.

Net cash proceeds from the sale will total approximately $56 million and be used to pay down debt.

GUD is involved in the manufacture, importation, distribution and sale of automotive products, pumps, pool and spa systems and water pressure systems.

Davey is an established brand offering services including water transfer, conservation, treatment and filtration including pumps, pool pumps and chlorinators.

Waterco history

Established in 1981, Waterco makes and distributes a range of products for the international swimming pool and water treatment markets.

It is the franchisor of pool and spa retail outlets Swimart and the distributor of Zane Pool Heating solutions via a network of Australian dealerships.

Waterco delivers a comprehensive range of swimming pool and spa equipment and chemicals as well as domestic and industrial water treatment equipment to markets in over 40 countries.

It has offices, factories and warehouses in Australia, New Zealand, Malaysia, Indonesia, Singapore, China, the US and the UK.