Acquisitions · Heating equipment
Noritz buys US boiler maker PB Heat for $47 million
- Buyer
- Noritz (Kobe)
- Target
- PB Heat (Peerless boilers), Bally, Pennsylvania
- Value
- $47M (¥5.2B)
- Status
- Completed January 8, 2019.
- Date
- 2019-01-08
Noritz bought all of PB Heat, which makes gas and oil boilers under the Peerless brand, from Atlantic Shores Corporation for $47 million through a new US holding company. US trade press reported the price as undisclosed, but Noritz's Japanese filing states it.
Why it matters
Noritz, best known for tankless water heaters, wanted heating and commercial products to reach its overseas sales goal, with North America as a key market.
About PB Heat
PB Heat is based in Bally, Pennsylvania, where it has its headquarters, factory and research center. It makes cast iron and stainless steel boilers for homes and businesses and indirect-fired water heaters, sold mainly in the US Northeast, the biggest boiler market in North America. In 2017 it had sales of about $34 million and an operating profit of about $4 million.
Noritz's plan
Noritz's plan for 2017 to 2020 aimed to lift overseas sales to ¥70 billion, with China, North America and Australia as key markets. Peerless kept its own brand, sales reps and management under president Doug Shuff. Takenaka Partners advised Noritz, and Perkins Coie was its law firm.
Sources
Kakehashi M&A News home
