NYSE: WTS 136.34 +1.98 +1.47% Volume: 325,989 May 7, 2021

Watts Water Technologies Announces Agreement to Acquire Dormont Manufacturing Company

December 08, 2005

NORTH ANDOVER, Mass.--(BUSINESS WIRE)--Dec. 8, 2005--Watts Water Technologies, Inc. (NYSE:WTS) announced today the signing of a definitive agreement to acquire Dormont Manufacturing Company located in Export, Pennsylvania, in a stock purchase transaction.

Watts Water Technologies' Chief Executive Officer, Patrick S. O'Keefe, commented, "Dormont Manufacturing Company is a leading provider of flexible stainless steel connectors for natural and liquid propane gas connectors. Dormont is a leader in commercial food service applications with a significant portion of North American sales and a leading position in the United Kingdom. Dormont also works with appliance OEM's to provide internal component assemblies and private label gas connectors, which are sold under the OEM brand with the appliance in multiple leading retails chains. Dormont also supplies residential gas connectors through multiple trade channels and home improvement retailers."

Mr. O'Keefe continued, "We are pleased with the acquisition of Dormont. Dormont is a well-managed company with a strong brand name. Dormont provides us access to several new channels of distribution while allowing us to offer a broader product line to our existing professional contractor customer base. Dormont's annual revenue for 2005 is expected to be approximately $56.5 million. Under the terms of the purchase agreement, Watts will pay $94.5 million in cash to purchase all of the outstanding stock of Dormont and the land on which Dormont's manufacturing facility is located, subject to a post-closing working capital adjustment. Watts intends to fund the transaction with borrowings under its credit facility and cash on hand."

The acquisition of Dormont is expected to close by December 31, 2005. The consummation of the acquisition is subject to customary closing conditions, including expiration of the waiting period under the Hart-Scott-Rodino Act.

Watts Water Technologies, Inc. will hold a live web cast of its conference call to discuss the acquisition of Dormont on Friday, December 9, 2005 at 10:00 a.m. Eastern time. The press release and the live web cast can be accessed by visiting the Investors section of the Watts Water Technologies, Inc. website at www.wattswater.com. Following the web cast, an archived version of the call will be available at the same address until December 9, 2006.

Watts Water Technologies, Inc. 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. Its expertise in a wide variety of water technologies enables it to be a comprehensive supplier to the water industry.

This Press Release includes statements that are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including Dormont's expected 2005 revenue and the expected timing of the Dormont acquisition. These forward-looking statements reflect Watts Water Technologies' current views about future results of operations and other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. You should not rely on forward-looking statements because Watts' actual results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the following: the failure to obtain, or delays in connection with obtaining, regulatory approval of the Dormont acquisition or satisfaction of the Dormont closing conditions, shortages in and pricing of raw materials and supplies including recent cost increases by suppliers of raw materials and our ability to pass these costs on to customers, loss of market share through competition, introduction of competing products by other companies, pressure on prices from competitors, suppliers, and/or customers, the identification and disclosure of material weaknesses in our internal controls over financial reporting, failure to expand our markets through acquisitions, failure or delay in developing new products, lack of acceptance of new products, failure to manufacture products that meet required performance and safety standards, foreign exchange rate fluctuations, cyclicality of industries, such as plumbing and heating wholesalers and home improvement retailers, in which the Company markets certain of its products, economic factors, such as the levels of housing starts and remodeling, impacting the markets where the Company's products are sold, manufactured, or marketed, environmental compliance costs, product liability risks, the results and timing of the Company's manufacturing restructuring plan, changes in the status of current litigation, including the James Jones case, and other risks and uncertainties discussed under the heading "Certain Factors Affecting Future Results" in the Watts Water Technologies, Inc. Annual Report on Form 10-K for the year ended December 31, 2004 filed with the Securities Exchange Commission and other reports Watts files from time to time with the Securities and Exchange Commission.

CONTACT: Watts Water Technologies, Inc.
William C. McCartney, 978-688-1811
Fax: 978-688-2976

SOURCE: Watts Water Technologies, Inc.

IR Contact

Tim MacPhee, Treasurer,

Vice President Investor Relations



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