Plumbing and Mechanical

Watts Acquires Several Companies

January 14, 2006

Watts Water Technologies Inc. announced several recent acquisitions. First, the company's Canadian subsidiary, Watts Industries (Canada) Inc., completed the asset purchase of Flexflow Tubing LLP, Langley, B.C., Canada, which includes a full compliment of PEX manufacturing equipment. The agreement was for approximately $6.25 million in cash. The company also announced plans to buy Changsha Valve Works in Changsha, China, this month.

Next, Watts acquired FEBCO, a company present in the landscape irrigation industry; Mueller Steam Specialty, a full-line supplier of pipeline strainers and check valves; and POLYJET, which offers a customized sleeve valve. These three businesses have combined annual revenues of approximately $57 million.

For the three-month period that ended Oct. 2, Watts reported sales of $232.7 million, up from $210.2 million during the same period in 2004. Watts' third quarter profit was relatively stable at $13.4 million, compared with $13.7 million during the third quarter of 2004.