Watts Water Technologies acquires AERCO International

US-based water solution provider Watts Water Technologies has acquired AERCO International, which is a supplier of commercial boilers and water heating equipment to the HVAC / plumbing industry, for $264.5m.

AERCO is a subsidiary of US-based equity firm Riverside Company.

The acquisition for 100% stake in AERCO was completed through an all-cash transaction, Watts said. The final purchase value is subject to net working capital adjustment.

Watts announced the deal in November and funded the transaction through its borrowings under its credit facility.

Watts CEO Robert J. Pagano Jr previously said: "Acquiring AERCO will allow us to expand our product breadth to the strategically important adjacency of heat and hot water offerings.

"AERCO is a recognised leader in the fast-growing market for high-efficiency boilers and hot water heaters, with solid operating margins and attractive opportunities to continue its strong growth.

"AERCO’s products complement our existing portfolio, strengthening our ability to provide a total solution for our customers.

"With our existing international footprint, we also anticipate expanding AERCO’s worldwide presence."