Reliance Worldwide Corporation Limited (RWC) has entered into an unconditional agreement to acquire all of the issued shares of EZ-FLO International Inc. for $325 million1. The business is being acquired from interests associated with EZ-FLO’s founder, Saleem Lahlouh.
EZ-FLO is a leading manufacturer and distributor of plumbing supplies including plumbing specialty products, appliance supply lines, flexible water connectors, gas connectors, and other accessories. Established in 1980, EZ-FLO has grown rapidly by continuously expanding its product range. In 2000, EZ-FLO acquired the EASTMAN brand, which is the leading brand in large appliance connectors in the U.S. The EASTMAN brand will immediately position RWC as a leader in supporting all those who service major appliance installations including plumbed appliances, gas, hot water, and dryer venting.
EASTMAN appliance connectors represent approximately half of EZ-FLO’s revenues, and a further 20 percent of sales are generated by EASTMAN installation products. The balance of sales revenues are derived from a wide range of plumbing repair and replacement products. While sales are predominantly in the U.S., approximately 11 percent are generated outside of the U.S. in Canada, Central and South America, and the Caribbean.
Approximately half of EZ-FLO’s revenues are generated from products manufactured at its plant located within the Ningbo Free Trade Zone in China, with a further 20 percent sourced from exclusive third-party manufacturers in China. In the U.S., EZ-FLO has a network of seven distribution centers from which its extensive product range is distributed through 5,000 channel partner outlets.
EZ-FLO’s executive management team will remain with the business following completion.
RWC Group Chief Executive Officer, Heath Sharp, said the acquisition of EZ-FLO aligns with RWC’s growth strategy and will enhance the company’s market position.
“The acquisition of EZ-FLO is strongly aligned with RWC’s strategy of adding complementary products that broaden the depth of solutions offered to end-users and expand our market presence in aligned sectors. Together, we manufacture some of the most trusted brands in the industry, including SharkBite, HoldRite, John Guest, Speedfit, and Cash Acme. With EZ-FLO and EASTMAN, the number one brand in the U.S. appliance connector market, we will be positioned as a leader in supporting all those who service major appliance installations.
“The combination of EZ-FLO’s product portfolio, manufacturing and sourcing capabilities, distribution footprint, customer service, performance track record, and future growth prospects makes it an important and attractive addition to RWC. We will be seeking to leverage our extensive channel partner network in North America to expand the distribution footprint for EZ-FLO, while at the same time benefiting from EZ-FLO’s strong relationships with retail merchants and OEM customers.
“Customers will benefit from more top-quality products and trusted brands, enhanced fulfillment capabilities, and improved service, thanks to a more extensive national warehouse footprint. Our combined supply chain capabilities will help ensure products are available where and when our customers need them, strengthening customer service across every channel. Our ‘first-time-right’ performance commitment provides end users with products they can count on, protecting customers’ hard-won reputations,” Sharp said.
Completion, subject to customary conditions, is expected to occur in November 2021.
Source: Reliance Worldwide Corporation
