Rheem acquires water tank manufacturer

Rheem has acquired DEJONG, an independent manufacturer and supplier of stainless steel hot water tanks, from Nordian Capital. Founded in 1859 and based in Gorredijk, the Netherlands, DEJONG produces hot water tanks for multiple applications including solar, heat pump and boiler configurations.

“Rheem and DEJONG are aligned on many fronts, including our commitment to sustainability,” said Chris Peel, president and CEO at Rheem. “Together, we will continue to lead through innovation and develop products that reduce dependence on carbon fuel sources while expanding DEJONG’s presence beyond Europe and North America.”

“This partnership provides significant opportunity to support market expansion by pairing hot water storage tanks with sustainable energy sources, creating an integrated system that will appeal to our customers,” said Rich Bendure, president Rheem Global Water. “Together, we will develop a category of products that provides value and meet the needs of our end users.”

DEJONG will operate as a standalone business unit within Rheem’s Global Water Division. Arno La Haye, managing director of DEJONG, will continue in his leadership position.

“Our growth potential requires substantial investments that only a company like Rheem can make,” La Haye said. “Rheem brings us a true industrial partner who knows our business, has a strong market presence and makes strategic decisions based on long-term goals.”

Marcone acquires Munch’s Supply

Marcone, a distributor of home appliance, HVAC and plumbing repair parts and equipment across North America and current portfolio company of Genstar Capital, announced it has acquired Munch’s Supply, a distributor of HVAC equipment, parts and supplies from Ridgemont Equity Partners. Ridgemont and Munch’s management team will retain a meaningful minority stake in the combined entity.

Jim Souers, CEO of Marcone, stated: “Munch’s has built a strategic partnership with the preeminent industry OEMs, offering the highest quality and most trusted brands in the market. Customers value their partnership with Munch’s, and we hope to build on the relationships they have established to offer additional products and services. As we further build Marcone as a partner serving the appliance, HVAC and plumbing sectors, I look forward to working with Bob Munch and his team to leverage the core tenets of Munch’s philosophy, including its reputation as an M&A acquirer of choice in the HVAC sector.”

Munch, chief executive of Munch’s, said: “We have built Munch’s over the decades into a one-stop-shop that ensures our customers have a consistent and trusted partner to access the industry’s most iconic brands, enabling them to perform critical installation, repair and service work with minimal downtime. Our growing eCommerce presence will also provide best-in-class technology capabilities and deliver seamless integration with our suppliers and customers. Munch’s local approach to serving the needs of suppliers, customers and employees is a strong cultural fit with Marcone, and we look forward to becoming part of their family and building Marcone’s HVAC service capabilities to broader geographies.”

Rob Rutledge, managing director at Genstar Capital, said: “Munch’s is a terrific business that fits squarely into Jim’s thesis of being the hub for parts and services to the home. We are excited to partner with Bob, Ridgemont and the Munch’s team to accelerate the growth of the platform, including through organic initiatives to better serve our combined customer base and continued M&A opportunities in the sizable HVAC and plumbing markets.”

Jack Purcell, managing partner at Ridgemont, added: “Alongside Bob and his team, we expanded the Munch’s platform into several new states, entered the Canadian market and significantly diversified the company’s product offering. Even years before our investment in Munch’s Supply, we admired the company’s legacy as a trusted partner to suppliers and customers at the local level, and we are very pleased to join forces with Genstar and Marcone, an industry leader in the appliance market with a great reputation as a solutions-oriented provider.”

In other industry-related news, Marcone announced it has acquired Professional Plumbing Group, a distributor of plumbing products for repair and remodel applications.

PPG designs, manufactures, markets and distributes plumbing products. PPG’s portfolio includes products from two proprietary brands — Wolverine Brass and Speakman — as well as third-party products across all of the leading brands. PPG sells 20,000 SKUs to more than 10,000 customers including plumbing technicians, third-party distributors, eCommerce providers and retailers, and through commercial channels such as hospitality. PPG has nearly 300 employees and is based in Concordville, Pennsylvania.    

“PPG is a superb business and a leader in the plumbing specialty marketplace operating through highly diversified sales channels with long-established customer relationships,” Souers stated. “Its brands are well known and trusted among the trade community and is a strong strategic fit with our go-forward strategy. We are excited to capitalize on increased spending on plumbing products from consumers, technicians and larger strategic accounts, and look forward to working together with PPG to accelerate growth. We are pleased to welcome PPG’s strong management team and organization to the Marcone family.”

Rutledge added: “When we partnered with Marcone and its management team earlier this year, we knew it was a truly outstanding business in its core market with a large opportunity to expand by selling other parts and services into the home. PPG represents an exciting step into the large and fragmented plumbing market, with material revenue opportunities across the combined customer base.”

Gustave A. Larson acquires Progress Supply

The Gustave A. Larson Co. announced it closed on the purchase of Progress Supply on Dec. 17, 2021.

Progress Supply is a long-time established and successful multi-location HVAC and refrigeration distribution company in central and southwestern Ohio, southeast Indiana and northern Kentucky.

Gustave A. Larson Co. thanks Progress Supply’s owners, Mark Faessler and K.C. Faessler, for growing a successful business with great customer relationships. Mark Faessler has exited the business as of the close of the sale, and Larson wishes him an enjoyable retirement. Gary Sparks, who has been the president of Progress Supply for the last 10 years, will become vice president/general manager of Progress Supply, a Gustave A. Larson Company.

“This acquisition increases our presence in Ohio and Kentucky and means that we can now support more contractors in these areas with our extensive inventory and dedicated customer service. Moreover, Progress Supply aligns with our Larson values and culture, and brings the same level of commitment and service to its customers,” said Scott Larson, Gustave A. Larson president and COO.

Progress Supply has been in business since 1960 and is headquartered in Cincinnati, Ohio, with branches in Cincinnati, Columbus, Dayton and Louisville, Kentucky. PSI is recognized as a market leader in the commercial refrigeration segment and has long-time established relationships with key manufacturing partners, Gustave A. Larson noted.

“I’d like to thank our dedicated employees for their commitment to serving our customers over the years. Our goal has always been to get the product or information that our customers have requested, into their hands when they need it. We will go out of our way to meet our customers’ needs and appreciate their partnership and support. Although the ownership is changing, I can assure you that the people and customer service will remain the same,” Mark Faessler said.

Grundfos and Enaqua announce acquisition

Grundfos and Enaqua management announced the parties have signed an agreement for the Enaqua management team to acquire 100% of the shares of Enaqua. This transaction is expected to close within a short time. The acquisition represents a key opportunity for Enaqua management to leverage the company’s expertise to strengthen its technology portfolio focused on UV water treatment.

“This acquisition is an exciting step in our journey,” said Mark Wilke co-CEO of Enaqua. “This will allow us to continue to offer our customers the best available technology for their water treatment applications. We look forward to further strengthening our product portfolio and services with all our customers in mind.”

Rick McIntyre, co-CEO of Enaqua, further commented, “We are excited to (be able to) continue providing our customers with the state-of-the-art UV disinfection solutions that Enaqua has been known for throughout our long history.”

Enaqua holds experience in UV water treatment for municipal wastewater disinfection and process water treatment, including food and aquaculture as well as reuse applications.

“We have great respect for the Enaqua team, which has been doing a great job within its market,” Grundfos Group Vice President Tommy Due Høy said. “Enaqua has a proven track record in its niche focus market of UV water treatment solutions, and we believe that Enaqua will be able to better fulfill its potential under different ownership. We are pleased to have a buyer who will be able to nurture, strengthen and develop Enaqua.”

Until and after transaction closing, Enaqua will continue to maintain normal operations towards customers and suppliers.