Personal care appliance and water-heating manufacturer Water Pik Technologies, Inc. announced that it has signed a definitive agreement to sell its Laars(R) Heating Systems business to water heater manufacturer Bradford White Corporation for U.S. $24.3 million.
Under the agreement, the Laars Heating Systems business will become a wholly owned subsidiary of Bradford White.
The transaction is expected to be completed on June 30, 2005 and is not expected to have a material impact on operating income for the remainder of fiscal year 2005, other than the effect of recording the transaction.
"We are pleased that we have been able to reach this mutually beneficial agreement with Bradford White," said Michael P. Hoopis, CEO for Water Pik. "The divestiture of our Heating Systems business will allow us to further focus our resources on our two remaining business segments." As previously announced in January 2005, Bradford White's board of directors is reviewing strategic alternatives for the company.
"The addition of the Laars Heating Systems' extensive line of technologically advanced products, its personnel and manufacturing and distribution capabilities are key additions to the Bradford White family," said A. Robert Carnevale, president and CEO of Bradford White. "The acquisition is one in a series of focused moves we have made in recent years to continue growth and expand our appeal to the plumbing and HVAC industry."
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