Watts Water Technologies Inc. (NYSE: WTS) is buying Aerco International Inc. from private equity firm the Riverside Co. for $264.5 million.
Aerco, headquartered in Blauvelt, New York, manufactures commercial boilers, water heaters and other products. Riverside bought the company in 2007. Since then, the company has expanded product lines, including tankless water heaters, and opened a manufacturing facility and research and development lab.
North Andover, Massachusetts-based Watts Water provides plumbing, heating and water-quality products for residential, industrial, municipal and commercial settings. The acquisition allows Watts Water to expand its product offerings into heat and hot water.
Riverside, based in Cleveland and New York, continues to be very active. Earlier in November, the firm bought a division of LeaseHawk to add to real estate training company Grace Hill. Before that, in October, the firm acquired a majority stake in Spectrio LLC, an audio and video marketing company. Riverside's co-CEOs won Mergers & Acquisitions M&A Mid-Market Dealmakers of the Year Award for 2013.
KeyBanc Capital markets and Jones Day advised Riverside on the deal.