Industry News
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American Standard sells Kitchen & Bath business
American Standard Companies Inc. has signed a definitive agreement to sell the company's worldwide Bath and Kitchen products business to funds advised by Bain Capital Partners, LLC, a leading global private investment firm, for $1.755 billion in cash.
Upon completion of the sale, Bain Capital will acquire all of American Standard’s Bath and Kitchen business with 2006 annual sales of $2.4 billion, 26,000 employees and 54 production facilities in 23 countries worldwide. The business manufactures and markets industry-leading products under brand names such as American Standard, Ideal Standard, Armitage Shanks, Porcher, Jado, Ceramica Dolomite and Vidima.
“This is a major milestone in our plan to separate American Standard into three focused, better understood companies," said Fred Poses, American Standard chairman and CEO. "We believe that Bain Capital's all-cash offer provides excellent value for our shareowners. Bath and Kitchen is a global market leader, with size, global reach and organizational talent. It has a rich history and a great future for its customers, employees and new owners.”
“This is a market-leading global company with a wonderful heritage, a strong portfolio of brands, deep customer relationships and an experienced management team,” said Steve Barnes, a managing director at Bain Capital based in Boston. “We look forward to supporting the management team and dedicated employees in realizing the company's full potential through continued operational improvements, further enhancing and leveraging its strong family of brands, and accelerating growth,” added Walid Sarkis, a London-based managing director at Bain Capital.
American Standard Companies is completing plans to spin off WABCO. Regular trading of WABCO’s common stock (WBC) is set to begin Aug. 1 on the New York Stock Exchange. It is currently traded on a “when issued” basis.
Home Depot sells HD Supply
It has been confirmed that Home Depot has sold its HD Supply division to a major private equity consortium. The three firms making up the consortium are Bain Capital, Carlyle Group, and Clayton Dubilier & Rice. They bid $10.3 billion and will each take an equal stake in HD Supply. It is estimated that Home Depot had spent approximately $8.5 billion for the companies it had acquired to make up the division -- including $4 billion for the Hughes Supply acquisition in 2006.
Our sources indicate that another group of private equity firms had also bid on HD Supply. This group was comprised of Thomas H. Lee Partners LP and CCMP Capital Advisors LLC.
The Bain/Carlyle/CD&R winning bid is of particular interest since the latter’s full partner, Charlie Banks, was formerly CEO of Ferguson Inc. and parent company Wolseley Corp. The major part of Banks’ career was spent in the PHCP industry’s distribution sector with Ferguson, a leading revenue and profit generator among U.S.-based PHCP multi-branch wholesalers. It will be especially interesting to see if Banks plays a pivotal role in the operations of the new acquisition.
Our Home Depot contact indicated that former CEO Robert Nardelli, who had built HD Supply into a $12-billion annual revenue giant, was committed to further expansion of this approach, to which a growing number of directors objected. Their concern was that the expansion of HD Supply would dilute the company’s massive cash flow and steer its direction away from the retail home maintenance business. HD Supply had grown to 13% of Home Depot’s total revenues in 2006, but only 8% of its operating profit. It was reported that Nardellli had planned to expand HD Supply to reach 20% of the retailer’s total sales.
Gear up for REX 2007
The radiant panel association is hosting the only national conference and tradeshow exclusively for radiant heating, cooling and snowmelting. Mark your calendar and set aside some time for this event August 22-24, Hartford, Conn. There will be a lot of “green” technology and alternative energy exhibitors and sessions. Check out www.radiantpanelassociation.org for more details.
Mod-con boiler installation with Hot Rod!
When: Wednesday, August 29 at 7:00 CST
Where: Your computer!
How: Register here today!
What: Don’t miss the next webcast from Phc News! This next webcast will feature a hands-on installation of a Lochinvar Knight mod-con boiler and indirect tank. Hot Rod will install the boiler on a PHP Knight stand with Taco components.
The installation will include Viega FostaPex tube to pipe the radiant zones and indirect tank. Afterward, attend a live interactive chat with Hot Rod and executives from Lochinvar, Viega and Taco. You won’t want to miss this one!
New Products
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SharkBite line adds PEX tubing The SharkBite Connection System from now includes PEX tubing. Combined with labor-saving SharkBite push-fittings and valves, it creates a whole-house connection system. With no connection tools required, it’s a fast, easy way from meter to fixtures — ideal for plumbing, hydronic and radiant systems in both residential/commercial apps. Available in 3/8", 1/2", 3/4" and 1" sizes. Cash Acme. |
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Dedicated thermostat LoadMatch Thermostats provide exceptional control of LoadMatch systems employing either heat pump or fan coil units. They are available in stand-alone and network versions. Versatile, all-in-one LoadMatch Thermostats come with an easy-to-read interface and large backlit display and are available in BACnet, Echelon-Lontalk and non-communicating versions for use with virtually any system. Preprogrammed and LoadMatch-ready, they require little or no configuration before use. LoadMatch Thermostat fan coil models are available with relative humidity (RH) sensors to provide local dehumidification with reheat capability. Easy to install, the thermostats have a hinged design with removable terminal blocks. Taco. |
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MANABLOC system solutions Upgraded patented MANABLOC water distribution manifold now offers installers the ability to choose PureFlow bronze press, brass or PolyAlloy crimp, or traditional compression connections for the supply and distribution connections at the MANABLOC. Viega. |
Movers & Shakers
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Terry Teach is the new vice president/business unit director, residential, for Grundfos Pumps in the U.S. Terry’s new area of responsibility includes the company’s successful line of residential hot water circulators as well as Grundfos core technologies and growing presence in constant pressure in the water systems markets. |
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Weil-McLain, a leader in hydronic heating systems for residential and commercial structures, today named John Way as President. Way comes to Weil-McLain from Thermal Product Solutions (TPS), a unit of SPX Corporation and a global leader in thermal processing products and cost-effective engineered solutions, where he served as president. |
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MJSI, Inc., maker of the HydroWorks family of water conserving plumbing products, has hired Robert Wysock as its sales manager. In this newly created position, Wysock will be responsible for supporting and coordinating sales efforts to distributors, co-ops, wholesalers and large home centers. The staff expansion is an important part of the company’s national sales strategy. |
