Rheem Australia has made a proposal to acquire 100 per cent of the Aqua-Max business in a deal worth approximately $40 million.
But the deal between the two companies is conditional on ACCC clearance and investigations are expected to be conducted over the next six to eight weeks before the acquisition is allowed.
Matt Sexton, CEO of Rheem Australia, has commented that key driver behind the decision is the rapidly evolving Australian regulatory environment, and he also added that he thought Aqua-Max was a natural fit with the Rheem business.
“Local industry rationalisation is inevitable, given the regulatory changes being introduced by State and Federal Governments,” Sexton said. “These changes will accelerate the decline in traditional water heating products, such as electric and low-efficiency gas in favour of renewable (solar and heat pump) and higher efficiency gas systems. Rising energy prices will only accelerate these changes.”
“We are committed to maintaining our position as a large and globally competitive Australian manufacturer. This acquisition will underwrite a number of other things we are doing to redefine our future business in Australia. By providing immediate access to some different gas technologies and by giving us some additional local tank volume, it will increase the speed and certainty of the changes we need to make.”
Sexton also stated that Rheem has plans to build upon Aqua-Max’s separate brand identity and further their great reputation in the market.