BDO M&A advises plumbing group on sale to Americans

Australian Valve Group, a Perth based plumbing group, has been acquired by Watts Water Technologies. 

Consultants from BDO served as the exclusive sell side advisor for the transaction. They were engaged by the three founders of Australian Valve Group, who launched a sale process as they felt the time was right to partner with a larger business that would be capable of providing capital to fuel further growth. 

Founded around the turn of the century, Australian Valve Group, designs and develops a range of heating control valves. The company has grown to a nationwide player, providing well-known products like the Quickie Kit, Pressure Limiting Valves and MAXI e-stop to distribution networks and industrial groups. 

With the support of Watts Water Technologies, a US headquartered manufacturer and one of the larger companies specialised in plumbing, heating, and water quality product lines for commercial, residential and industrial applications, Australian Valve Group aims at expanding its presence in Australia, and broadening its footprint to include new markets in Asia Pacific. 

“Watts Water Technologies are keen to support our growth strategy in Asia Pacific with their strong balance sheet and suite of new products in the local market,” said Julian Anderson, the CEO of Australian Valve Group. 

The deal closed last week, and according to Todd Grover, a Partner in BDO’s Mergers & Acquisitions practice, it was a challenge to close the transaction amid the global pandemic. With the Watts deal team being in both Boston and Shanghai, and Australian Valve Group’s team Perth and Melbourne, we needed everyone to embrace a technological solution. But when both sides of a transaction fit so well together, we always find a way to get a deal done.” 

Meanwhile, for 140-year-old Watts Water Technologies, the move marks a significant step in its strategy to grow its presence in “the strategically important Australian market”, said Elie Melhem, President for the Asia-Pacific, the Middle East and Africa region.

In related M&A news, earlier this month Tradeplus24 hired corporate finance consultants from BDO to help the company secure $5 million in growth funding.