Watts Water Technologies Acquires Bradley, Expects EBITDA Margin Accretion By 2027
Portfolio Pulse from Lekha Gupta
Watts Water Technologies Inc (WTS) has agreed to acquire Bradley Corporation for $303 million, which is expected to be around $268 million after adjusting for estimated tax benefits. The acquisition is expected to close in Q4 FY23 and enhance WTS' exposure to commercial and industrial end markets. The deal is expected to be modestly accretive to 2024 adjusted EPS and benefit adjusted EBITDA margins by 2027. WTS plans to fund the deal through cash and an existing revolving credit facility.
August 31, 2023 | 3:35 pm
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POSITIVE IMPACT
WTS's acquisition of Bradley Corporation is expected to enhance its exposure to commercial and industrial end markets and benefit its EBITDA margins by 2027. The deal is expected to be modestly accretive to 2024 adjusted EPS.
The acquisition of Bradley Corporation is expected to enhance WTS's exposure to commercial and industrial end markets, which could potentially increase its revenue and profitability. The deal is also expected to be modestly accretive to 2024 adjusted EPS and benefit its EBITDA margins by 2027, indicating a positive financial impact. Therefore, the short-term impact on WTS's stock price is likely to be positive.
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