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Reece Group, Australia’s leading provider of plumbing, HVAC and waterworks products, will acquire MORSCO for $1.44 billion.
Founded in 1920, Reece Group is listed on the Australian Securities Exchange and has more than 5,300 employees throughout 600 branches in Australia and New Zealand, servicing the plumbing, bathroom, building, civil, irrigation, heating, air conditioning and refrigeration industries.
“The Reece track record of innovation is truly world class and their customer offer is second to none,” said Chip Hornsby, MORSCO CEO. “We can’t think of a better home for MORSCO. Our team is very much looking forward to the opportunity to join forces with a successful, strategic, long-term industry player and we believe there will be many opportunities for cross-pollination of ideas and talent over the years ahead.”
According to the Financial Review, Reese CEO Peter Wilson had run out of acquisition opportunities in Australia because it is the No.1 player in its industry. Meanwhile, growth rates in the U.S. plumbing market are running at twice the rate of Australia.
"It has a strong platform across the sunbelt states,” Wilson said. “It's in the growth states." Reece said he had been studying the U.S. market for 10 years and had been talking with MORSCO and equity firm Advent for two years. Serious due diligence had begun in January.
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