Reece Group, a leading provider of plumbing, waterworks and HVAC suppliers in Australia, has entered into a binding agreement to acquire Fort Worth-based MORSCO Inc., a leading U.S. distributor of similar products.
The deal is valued at $1.44 billion including debt. The deal will give Reece Group access to the fast-growing U.S. market.
Owned by Advent International, MORSCO has 2,500 employees and distributes more than 125,000 products through its 171-branch network in 16 states. MORSCO had sales of $1.7 billion in 2017, up from $1.6 billion in 2016 and $1.5 billion in 2015, according to a Reece Group presentation. Plumbing accounted for 60 percent of the company’s sales, followed by waterworks, 33 percent and HVAC, 7 percent.
“The Reece track record of innovation is truly world class and their customer offer is second to none,” said Chip Hornsby, CEO at MORSCO. “We can’t think of a better home for MORSCO. Our team is very much looking forward to the opportunity to join forces with a successful, strategic, long‐term industry player and we believe there will be many opportunities for cross‐pollination of ideas and talent over the years ahead.”
The acquisition, which is pending regulatory approval, is the first for the Reece Group outside of Australia and New Zealand, having already made significant plumbing-related acquisitions including Viadux (2017), Actrol (2014) and LG Carder (2006).
MORSCO’s roots go back to 1917, when J.T. Morrison, W.L. Armstrong and R.P. Turbeville founded Fort Worth Pump & Windmill Co. in 1917.
The company changed its name in 1920 to Fort Worth Supply Co. to reflect its new direction and focus on plumbing supplies. In 1926, the company took on the name Morrison Supply Co. to reflect the leadership of J.T. Morrison. In November of 2011, Morrison sold majority shares to Advent International and with that change began renewed expansion. It also became part of an umbrella wholesale distribution entity called MORSCO. The company has been busy over the last few years expanding throughout the southwest and, more recently to the east coast as well.