Reece Group completes MORSCO acquisition

Reece Group is pleased to announce it has completed the A$1.91bn acquisition of MORSCO Inc, a leading US distributor of plumbing, waterworks, heating and cooling (HVAC) products.

The acquisition marks Reece Group’s entry into the US$32bn US plumbing market through MORSCO’s 171 branches within 16 states throughout the fast-growing US Sun Belt region.

Reece Group Chief Executive Office and Managing Director, Peter Wilson, said the well supported equity raising demonstrates strong investor support for Reece’s financial performance, strategy and investment rationale of MORSCO.

“We’re excited to welcome MORSCO into the Reece family in what is a transformational opportunity that has been years in the making,” Mr Wilson said.

“The investment from new and existing shareholders to acquire MORSCO affirms support for our growth strategy into the US plumbing market, which is eight times the size and forecast to grow at twice the rate of the Australian market.

“With the deal complete, our focus will remain on working with MORSCO CEO, Chip Hornsby, and his experienced team on integrating the company into the Reece family,” he said.

Reece Group will run MORSCO separately to its Australian and New Zealand businesses, with the existing MORSCO management remaining in place.

MORSCO Chief Executive Officer, Chip Hornsby, said: “We’ve worked closely with Peter and his senior leaders since announcing the acquisition, including joint roadshows throughout our branch network.

“Reece’s long-term commitment to invest and grow MORSCO has been well received and we look forward to benchmarking their best practices in operations and customer experiences over time,” he said.

The deal follows a recent announcement from Reece Group to acquire New Zealand plumbing business Edward Gibbon and the Zip Plumbing Plus stores in Christchurch and Takanini, expanding the company’s New Zealand network from 18 to 30 stores.

These acquisitions add to Reece Group’s track record of successfully acquiring and integrating plumbing-related businesses, such as Heatcraft NZ (2018), Viadux (2017), Actrol (2014) and LG Carder (2006).

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