Water Heaters

Blauvelt, N.Y. — AERCO International, Inc., portfolio entity of The Riverside Company, announced that they are being acquired by Watts Water Technologies, Inc. The acquisition of AERCO is expected to close before the end of this year. The consummation of the acquisition is subject to customary closing conditions.

AERCO is a leading manufacturer of a wide range of high-efficiency commercial boilers and water heaters. Its innovation and ability to work directly with end-users to understand project-specific requirements separate it from its competition. The company is based in Blauvelt, New York and its products are distributed primarily in North America for the commercial markets. During Riverside’s ownership period since 2007, AERCO opened a state-of-the-art manufacturing facility and R&D lab, launched an innovative line of tankless water heaters, broadened its boiler product line, and revamped its sales and marketing approach and go-to-market strategy.  “It’s been wonderful to work with the Riverside team. They provided resources and support that allowed us to thrive and positioned us for continued success. AERCO is in a very strong position with a bright future.” said AERCO Chief Executive Officer Ervin Cash.

Watts Water Technologies, Inc., through its subsidiaries, is a world leader in the manufacture of innovative products to control the efficiency, safety, and quality of water within residential, commercial, and institutional applications. Watts’ expertise in a wide variety of water technologies enables them to be a comprehensive supplier to the water industry. Robert J. Pagano Jr., chief executive officer, commented, “Acquiring AERCO will allow us to expand our product breadth to the strategically important adjacency of heat and hot water offerings. AERCO is a recognized leader in the fast growing market for high efficiency boilers and hot water heaters, with solid operating margins and attractive opportunities to continue its strong growth. AERCO’s products complement our existing portfolio, strengthening our ability to provide a total solution for our customers. With our existing international footprint, we also anticipate expanding AERCO’s worldwide presence.”

“AERCO shares Watts’ commitment to growth for all of its customers and partners, and this acquisition joins two great companies that share a similar set of values and a strategic vision,” said AERCO Chief Executive Officer Ervin Cash. “We are impressed with the strength of the Watts management team and look forward to working with them to capture the opportunities ahead of us. This partnership will allow both companies to offer our customers complete solutions, and allows AERCO even greater opportunities for growth. Together, we create a balanced portfolio of products and services that can be tailored to best serve the evolving needs of our global customers.”

Watts Water Technologies, Inc. has indicated that AERCO is a platform acquisition and will continue their current operation out of Blauvelt, NY. Utilizing AERCO’s manufacturing facility with substantial capacity for growth, Watts sees expansion opportunities that will strengthen AERCO’s solutions and system offerings.

Irvine, Calif. — As Korea’s largest boiler company, exporting to more than 30 countries worldwide, KD Navien, has developed its industry leading reputation in the United States and Canada as a tankless water heater and combi-boiler company. With deep experience in the manufacturing of boilers and the largest single boiler manufacturing facility in the world, the company will expand its product line in the US and Canada in the fourth quarter when they begin selling the NHB (Navien Heating Boiler) series.

Ideal for residential and light commercial use, from the manufacturer that reinvented the way that people think about tankless water heating, the NHB builds on Navien’s recent successful product lines. The Navien Heating Boiler (NHB) will be offered in 4 sizes: NHB-55, NHB-80, NHB 110 and NHB-150 with turn-down-ratios respectively of 7:1, 10:1, 11:1, and 15:1. The noteworthy 15:1 TDR in the NHB-150 is achieved with Navien’s advanced burner system. One key component to that efficiency is the newly developed dual Venturi gas delivery system.

“Our new NHB heating boiler product will be much more than just another hi-efficiency condensing wall hung boiler added to the wide selection of boiler choices for contractors and homeowners” said Brian Fenske, Specialty Channel Sales Manager for Navien. “Yes we will have 95% AFUE, outdoor reset as required, and a few other similar operational features like the other brand choices available but then so much more!”

The NHB will offer industry leading options and features in the boiler operation parameters such as:

• the largest industry turndown ratios providing ease of installation with multiple smaller zones while maintaining high operational efficiencies
• a timed hydronic supply water boost feature
• adjustable heat capacity
• adjustable anti-cycle timer
• freeze protection
• adjustable Delta T ranges
• pressure LWCO with manual reset
• adjustable minimum burner time setting
• adjustable turndown ratio timing and many more.

“There are almost too many features to list. This product offers the installer an opportunity to achieve a true high-efficiency installation” says Fenske.

“It’s a little known fact that Korea is the 2^nd largest market for boilers in the world behind only the United Kingdom”, said Eric Moffroid, VP Sales and Marketing for Navien. “In fact there are almost three times as many boilers sold in Korea as in all of North America. An engineering and technology driven company, Navien has invested heavily in R&D over the past 36 years, resulting in a host of technologically advanced products. We are very excited to soon be offering this advanced heating technology and expertise here in the United States and Canada.”  www.navien.com