- Reece Group will acquire a U.S. plumbing supply wholesaler, Todd Pipe & Supply, for a total of US$160 million
- Todd Pipe management team will join MORSCO and play a role in the direction of the business and growth in Southern California
Reece Group will acquire a U.S. plumbing supply wholesaler, Todd Pipe & Supply, for a total of US$160 million.
Reece will acquire Toss Pipe for US$122 million, as well as a further US$38 million, which will be deferred until December 31, 2021.
Todd Pipe & Supply is a plumbing supply distributor around Southern California. It provides contractors with the industry’s most knowledgeable sales staff and competitively priced material.
Last year, Reece acquired MORSCO which is a leading U.S. distributor of commercial and residential plumbing.
Todd Pipe management team will join MORSCO and play a role in the direction of the business and growth in Southern California.
This acquisition will complement MORSCO’s presence in the U.S. bringing the total number of locations in Southern California to 23. MORSCO will now have a total branch network in the U.S. to 181.
Reece Group CEO Peter Wilson is pleased with the acquisition.
“Todd Pipe is an example of us acting on opportunities to consolidate the fragmented plumbing market in the US Sun-Belt region,” he said.
The company believes Todd Pipe will bring a loyal customer base and a team of experienced leaders.
From March 2018 to March 2019, Todd Pipe reported an earnings before interest, tax, depreciation and amortisation (EBITDA) of US$16.4 million.
“We acquired MORSCO last year to create a growth platform for the Group, and we will do this through organic, and considered in-organic opportunities as they arise,” Peter added.
The deal is expected to be completed by October 1, 2019.