Carter Morse & Goodrich ("CMG") is pleased to announce that it served as the exclusive financial advisor to Hubbell Electric Heater Holdings LLC (“HEH Holdings”) on its acquisition of RECO USA(“RECO”), a manufacturer of high-volume pressure vessels and commercial water heaters located in Cayce, South Carolina. The terms of the deal which closed on December 30, 2021, were not disclosed
HEH Holdings LLC, headquartered in Stratford, Connecticut, is a third generation privately held company focused solely on water heating and storage systems for industrial, commercial, and residential applications. The company owns several water heater brands including Hubbell, Vaughn Thermal, and Ace Heaters and has manufacturing operations in Connecticut, Massachusetts, California and now South Carolina. The addition of RECO strengthens the companies’ ability to provide larger capacity water heating and storage solutions to a new set of commercial and industrial customers.
Bill Newbauer III, the managing member of HEH Holdings LLC and CEO of Hubbell Heaters said, “RECO is the perfect addition to our family of companies as we look to expand strategically across North America. The RECO acquisition will increase production capabilities, including large storage systems. We are excited to welcome RECO employees and customers to our family of companies.”
RECO’s roots date to 1917 when it was known as the Richmond Engineering Company has become known throughout the industry as a leading manufacturer of ASME pressure vessels and water heaters, capable of designing and building storage tanks up to 15,000 gallon capacity. The company produces both standard and engineered products for various customers across a variety of industries, including process industries, pulp and paper mills, electric utilities, and municipal and governmental operations. The purchase includes all the assets of RECO USA including the 125,000 Sq. Ft. manufacturing facility on a 15-acre parcel. RECO’s production will remain in South Carolina and the business will operate as RECO Commercial Systems LLC.
“We believe that RECO has found a great partner in HEH Holdings and are looking forward to its continued success under its new owner,” said former Co-Owner, Mike Schleinkofer. “We have no doubt that Bill Newbauer and his team at HEH Holdings LLC will remain committed to providing the highest quality products and service to the company’s customers, a commitment that began over a 100 years ago.”
Ramsey Goodrich, Managing Partner of CMG, explained “We are thrilled to have advised the HEH Holdings team on this exciting transaction. This is another example of how CMG advises family-held and founder-led businesses on value-added transactions. We look forward to the continued success of RECO USA under the ownership of HEH Holdings.” Newbauer added “Our advisors at CMG provided invaluable advice and assistance in this transaction. I look forward to working with this talented team as we continue exploring new strategic acquisitions.”
Other transaction advisors included the Buckman Group (Corporate Counsel) and Finkel Law Group (Real Estate Transaction Counsel).
For additional information on the companies, please visit www.hubbellheaters.com, www.vaughncorp.com, www.aceheaters.com and now www.reco-usa.com.