A.O. Smith forms joint venture with Takagi
Ashland City, Tenn. — A. O. Smith Corporation and Takagi Industrial Co. Ltd. of Fuji-city, Shizuoka, Japan, announced in mid-June that they are establishing a joint venture to market and manufacture tankless water heaters in North America. As part of the joint venture, A. O. Smith will take over the management of Takagi’s existing North American sales and distribution organization, maintaining Takagi’s North American headquarters in Irvine, Calif. The companies expect the transaction to close in the third quarter.
“This venture is an important investment by A. O. Smith that will further expand our offering of high-efficiency water heating products,” said Ajita G. Rajendra, president of A. O. Smith Water Products Company. “It represents a rare opportunity to combine Takagi’s well-known brand and world-class tankless technology with the strong brands, customer relationships, and extensive distribution of A. O. Smith.”
Through the joint venture, A. O. Smith will offer a full line of tankless gas water heaters under its own brands in association with the Takagi brand and will assume responsibility for the Takagi brand in the U.S. and Canada.
Takagi currently manufactures a full line of gas tankless water heater models in Japan for residential and commercial applications including the recently released “second generation” 92% efficient T-H2 model designed for residential or light commercial applications. Upon achieving an appropriate volume threshold, the joint venture will bring manufacturing jobs to the U.S. and establish a production operation to support the growing needs of the business.
Privately held Takagi is one of Japan’s leading manufacturers of tankless water heating products and was the first to begin marketing tankless water heaters in the U.S. in 1994.
A. O. Smith Corporation, with 2009 sales of $2.0 billion, is a global leader applying innovative technology and energy-efficient solutions to products marketed worldwide. The company is one of the world’s leading manufacturers of residential and commercial water heating equipment, offering a comprehensive product line featuring some of the best-known brands in North America and China. A. O. Smith is also one of the largest manufacturers of electric motors for residential and commercial applications in North America.
Visit www.hotwater.com.
Acorn acquires 50% of Jay R. Smith; forms business alliance
City of Industry, Calif., and Montgomery, Ala. — Acorn Engineering Company and Smith Industries Inc. have announced a new business alliance and a jointly owned company. Effective June 15, Jay R. Smith Mfg. Co., a Division of Smith Industries joined the Acorn Engineering family of companies, and Acorn Engineering will be a 50% owner of Smith Industries. The name of the company will remain Jay R. Smith Mfg. Co., a Division of Smith Industries Inc.
Jay R. Smith (Smith Industries) and Earl L. Morris (Elmco Sales Inc. and Acorn Engineering) were both modern-day pioneers in the industry and founders of their individual companies. They each developed strong companies and were partners and friends from 1954 (when Elmco became a Jay R. Smith Mfg. Co. representative) until they passed away. The instant relationship and personal bond transcends three generations and continues with the Smith and Morris families.
Jay L. Smith, Don Morris and Dennis Morris, second-generation sons of Jay R. and Earl, have continued their business and personal relationships for over 50 years. The next generation of Smith’s and Morris’ (Jay L. Smith’s daughters, Dr. Holly L. Roth and Debbie Smith, and Don Morris’ children, Kristin Kahle, Randall Morris and Barrett Morris) pledge to continue what their grandfathers started. The Smith and Morris families will be represented on the new Board of Directors.
The new alliance of Acorn Engineering and Smith Industries will be the foundation for an exceptionally strong company and will be competitively anchored in our industry. For the realigned Smith Industries, Don Morris will assume the role of CEO of Smith Industries, Jay R. Smith Mfg. Co. Division and the Canadian subsidiary. Jay L. Smith will continue as president and chairman of the Board of Directors. The management teams of both Acorn Engineering and Jay R. Smith Mfg. Co. will remain the same.
Aalberts Industries acquires Conbraco
Doorn, The Netherlands — Aalberts Industries N.V. has reached agreement with the management of Conbraco Industries, Inc. to acquire 100% of the shares. Conbraco Industries is a leading manufacturer of a complete package of bronze, brass, steel and stainless steel valves and a range of backflow preventers sold mainly in the commercial, industrial and consumer market (retail) under the strong brand name “APOLLO¨” Valves. The acquisition will be effected after finalizing all formalities and approvals, which is expected mid-July.
With more than 1,000 employees, Conbraco Industries generates an annual revenue of approximately $200 million. Conbraco operates three manufacturing facilities in South Carolina (two in Pageland and one in Conway), and its headquarters is in Matthews, N.C.
Conbraco Industries was founded in 1928 by Clarence Mosack, grandfather of the current generation. The president of Conbraco Industries, Glenn Mosack, and his management team will remain with the company.
Conbraco Industries, “APOLLO¨” Valves, is a key player in the North American market for ball valves, safety, relief and check valves, strainers and a new patented range of stainless steel and casted backflow preventers for the commercial and fire protection markets. Additionally the company has a strong position in the industrial market with U.S.-made steel and stainless steel valves. Towards the consumer products market, Conbraco Industries offers different product lines and a complete service through a separate business unit.
Based on three strong brands — “APOLLO” Valves together with EPC (Elkhart Products) metallic fitting range and LASCO Fittings’ plastic fittings and other products — Aalberts Industries Flow Control can realize a more complete offering to the residential, commercial, consumer market, fire protection and industrial market in North America. The specification, sales and distribution channels of these three organizations will be working together to realize a strengthened and focused sales approach per market segment.
The “APOLLO¨” Valves range consists of many products which can also be sold through the existing sales and distribution network in Europe, where Aalberts Industries is present with own sales organizations in almost every country. Especially the product program of safety, relief and check valves and backflow preventers for commercial buildings is an extension of the portfolio in Europe.
Additionally Conbraco Industries’ product portfolio for the industrial sector opens new markets in Europe. There are many opportunities for cross-selling that can be jointly developed to strengthen the market position in Europe. The dedicated management and sales approach and experience of Conbraco Industries’ business unit Consumer Markets gives a lot of potential in the future by introducing European product lines and concepts through the existing channels in the U.S.
Conbraco Industries uses production technologies — especially the casting of bronze, steel and stainless steel products in all kind of different dimensions — which Aalberts Industries does not operate in Europe and gives new possibilities of product development for present and new markets. On the other hand, the European experience of automated machining and assembly can be used to optimize the manufacturing of Conbraco Industries. Also, joining the procurement of especially raw materials can increase Aalberts Industries’ profitability.
Conbraco Industries’ results will make a direct contribution to earnings per share and are expected to be consolidated with effect from July 2010. The acquisition will be financed from credit facilities.
Visit www.apollovalves.com.
Artisan Manufacturing announces strong growth, positive market response
Newark, N.J. — Artisan Manufacturing Corporation, a manufacturer of upscale kitchen and bath products, announced that the company saw a sharp increase in sales during the first quarter of 2010. This privately held company attributed the increase to a combination of sales growth for existing products and a positive reception to the new line of faucets that are currently being introduced to the marketplace. While the company has seen steady growth since its inception in 2002, the first quarter figures were 40% higher than any other quarter in recent years.
Alex Han, president of Artisan, attributed this to a combination of factors: ”Our overall business strategy calls for managed growth that is fueled by an introduction of new products that complement and expand our current offerings. Our wide array of diverse offerings, from traditional, to transitional, to modern, have been very well received, especially the newest vitreous China sink and faucet collections.”
The new Artisan faucet collection, which includes such features as LED lighting to show hot and cold temperatures, and flexible and gooseneck nozzles, will continue to be expanded throughout 2010. They are ideal for kitchens, bathrooms and bars, and engineered for long service, and come with a lifetime warranty.
Founded in 2002 by Alex Han, Artisan Manufacturing Corporation is a manufacturer of upscale sinks, faucets, and accessories designed to appeal to a large audience looking to combine quality with affordability. Han, through Artisan and his family businesses, has three decades of experience and background in manufacturing products for the plumbing and wholesale business.
Visit www.artisansinks.com or call 973/286-0080.
Irr Supply Centers acquires Hazard & Sons
North Tonawanda, N.Y. – Irr Supply Centers Inc., a regional distributor of plumbing, heating, cooling and refrigeration supplies, have announced that they are acquiring the assets of Derby, N.Y.-based distributor, L.A. Hazard & Sons, Inc.
L.A. Hazard & Sons operates four locations in Western New York servicing the equipment and parts needs of electrical, plumbing and heating contractors. They also operate two registered Kohler showrooms, Inspiration Bath Galleries, in their Clarence and Orchard Park locations.
“The acquisition of L.A. Hazard affords us the opportunity to enter new markets and product categories” said Michael Duffy, Irr Supply Centers president.
The Hazard locations will remain open and operate under the L.A. Hazard name.
Irr Supply Centers Inc. operates 28 locations in Western, Central New York and Northern Pennsylvania. Irr Supply also operates five registered Kohler showrooms, Visionary Baths & More, throughout New York State.
Visit www.irrsupply.com.
McJunkin Red Man acquires South Texas Supply
Houston — McJunkin Red Man Corporation recently acquired The South Texas Supply Company Inc., as part of its strategic focus to increase its presence and commitment to customers in the active shale plays across North America. Details of the transaction were not disclosed.
To support oil and gas exploration and production, as well as the pipeline and transmission infrastructure, MRC will be expanding operations and inventory in these active shales both organically and through acquisition, such as South Texas Supply within the Eagle Ford Shale.
South Texas Supply operates two branch locations, in Carrizo Springs and Dilley, Texas, and has supplied oilfield products to the region since 1996. Mark Hassell, one of the selling shareholders, will continue to manage the two locations. These new branches enhance MRC’s coverage in South Texas from its existing Texas branch locations in Laredo, Corpus Christi, Gonzales, Mission, and Jourdanton. MRC will be making additional expansions in the region with a regional hub and major pipe yard, increasing inventories, and enhancing logistics to meet the needs of MRC’s major customers in the region.
In addition to this acquisition supporting the company’s expansion in the Eagle Ford Shale, MRC recently opened a new facility in Horseheads, N.Y., supporting the northern activity in the Marcellus Shale and will soon be opening branches in Shreveport, La., and Center, Texas, supporting the Haynesville Shale.
Northeastern continues its expansion
Baltimore — In Northeastern Supply’s continuing effort to be there for its customers, they continue to add branches where customers have indicated they require them, expand to larger and more convenient locations for existing branches and put their product and services close to their customers — where they need them, when they need them.
The expansion that opened on May 26 is Northeastern Supply’s Georgetown, Del., branch, located at 20352 DuPont Blvd. This is its 32nd branch in response to customer requests for added convenience in shopping. Branch manager Bob Chango said, “Our customers have wanted a central location, something south of our Camden/Dover, Del., location and north of our Salisbury and Ocean City, Md., locations. This new store accomplishes that.
The Georgetown branch will house an expansive HVAC and plumbing inventory, on-site items such as pump and well, septic systems and an extensive amount and variety of pipe and fittings. With more than 30,000 square feet of interior space on a six-acre site, the store will offer ample parking, easy product pick-up and a wide assortment of products to choose from.
“Northeastern works hard to be your preferred supplier and Bob Chango will make a real difference at the location in delivering customers what they need, when the need it”, stated Steve Cook, president and CEO of the company.
“Now that we are open, I ask everyone to stop by, say ‘Hi’ and take a look around. This is what progress looks like”, Chango said.
Companies and individuals interested in obtaining products or services from the new Georgetown location can contact Bob Chango at 302/856-6000.
Visit www.northeastern.com.