Massachusetts-based Watts Water Technologies Inc., a manufacturer of plumbing, heating and water quality products, announced recently that it has entered into a definitive agreement to acquire Menomonee Falls-based Bradley Corp. for $303 million.
Bradley Corp. is a manufacturer of commercial washroom and emergency safety products, serving commercial, primarily institutional and industrial end markets. Founded in 1921, the company has annual net sales of approximately $200 million.
Watts Water Technologies is a public company with $1.98 billion in annual sales. Its shares trade on the New York Stock Exchange.
The net transaction value is approximately $268 million after adjusting for the estimated net present value of expected tax benefits of approximately $35 million, WWT said. The deal is subject to customary closing conditions and necessary regulatory approvals and is expected to close in the fourth quarter of this year, the company said.
Bryan Mullett, Bradley Corp.’s chairman and CEO, will join WWT as president of Bradley, a new platform within WWT’s Americas region. Mullet represents the fifth generation of Mullett family ownership and leadership of Bradley Corp., which was founded by Louis Schlesinger, Gustav Grossenbach and Howard A. Mullett, who became president of the company in 1928.
“We are very pleased to have Bradley join Watts and see tremendous opportunity for incremental value creation,” Mullett said. “This will help us capture the benefits from our diverse range of innovative and customized front-of-the-wall solutions and Watts’ global reach, broad product portfolio and operational strength. I am looking forward to joining the management team to drive continued growth and support the integration of these two companies that have a combined 250-year heritage of experience and endurance in sustainable water products and solutions.”
“Watts and Bradley complement each other well in terms of culture and shared vision, with proven track records of delivering innovative, high-quality products and solutions along with outstanding customer service,” said WWT chief executive officer Robert Pagano. “We look forward to welcoming the Bradley team to Watts Water Technologies.”
BizTimes Milwaukee reporter Ashley Smart recently connected with Mullett and Jon Dommisse, vice president of marketing and strategy for Bradley Corp., to learn more about the decision to sell and what’s next for the company.
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BizTimes: How did the company decide it was time to sell and what did that conversation look like among family members?
Mullett: “My family was united in wanting to grow the business at an accelerated level, while also retaining the 100-year family legacy and supporting local employment. Our relationship with Watts achieves these objectives and more.”
Did the company look at other buyers, private equity, doing an ESOP or even going public?
Dommisse: “We explored other options but found that Watts’ culture, industry reputation and commitment to American manufacturing was a great fit. Bradley also shares many customers and sales representatives.”
Will there be any changes to the Menomonee Falls HQ/Germantown facility footprints or the overall workforce?
Dommisse: “We plan to continue manufacturing here in Menomonee Falls and Germantown in the current facilities and with our current workforce. We also plan on continued equipment investments.”
How do you plan to lead the business going forward and will part of that involve trying to maintain the culture the company built under family ownership?
Mullett: “Bradley has been a family business for over 100 years; Watts also has roots as a family business. In fact, throughout its 150-year history, founding family member descendants are still in the Watts business. The companies have a strong cultural match, common values and shared pride in manufacturing high-quality products. That was important to me.”
Any idea what shareholders/the family will use the money from the sale for?
Mullett: “My brothers already run successful businesses in the area, and they will continue to look for new opportunities.”
Can you elaborate on what cost reductions will be achieved following the acquisition?
Dommisse: “We anticipate that leveraging Watts’ operational prowess and supply chain capabilities will benefit both companies.”
Accelerating growth was mentioned several times in the acquisition announcement. Will part of that growth be any sort of continued investment in Wisconsin facilities or workforce?
Dommisse: “We have made significant investments in our facilities over the past several years installing state-of-the-art equipment and technologies and modern workspaces for our office employees. These investments will continue as we plan our future growth.”
Why did you decide to stay on with the business and is there a set time period for your new role?
Mullett: “I feel strongly that Bradley will realize its full potential as part of the Watts family. This relationship of shared values and culture creates more opportunities for our employees, and our customers will have access to a wider range of high-quality products.”
