Ferguson Continues Strategic Growth With Four New Acquisitions
Ferguson plc (NYSE: FERG; LSE: FERG) announces the closing of four acquisitions: Southwest Geo-Solutions, Inc., AVCO Supply, Inc., GAR Engineering and Safe Step Tubs of Minnesota, Inc. In total, the company has closed on eight acquisitions this fiscal year, ending July 31, 2024. Aggregate annualized revenues for all acquisitions this fiscal year is approximately $350 million.
Southwest Geo-Solutions, Inc.
Southwest Geo-Solutions is a full-service distributor of erosion control, containment, geotextile and geogrid products headquartered in Austin, TX. This acquisition expands Ferguson’s Waterworks footprint in the central and southwest regions, and supports business diversification in erosion control and stormwater management.
AVCO Supply, Inc.
Located in Levittown, PA, AVCO is a leading distributor of boilers and hot water heaters and offers design and specification services to both commercial and residential contractors. The acquisition of AVCO reinforces Ferguson’s commitment to providing engineered solutions to the mechanical contractor and complements our strengths in the commercial pipe, valve and fitting product and hydronic categories in the Philadelphia market.
GAR Engineering, Inc.
GAR Engineering, Inc. is a fire protection engineering service and design firm located in Concord, NC. The acquisition of GAR Engineering allows Ferguson to expand its fire protection design and engineering services.
Safe Step Tubs of Minnesota, Inc.
Safe Step MN is an independent dealer licensed to sell and install Safe Step walk-in tubs and showers in the Midwest, serving the growing senior/aging-in-place market. This acquisition builds on the successful acquisition of Safe Step Walk-in Tub Company in 2018, the number one provider of walk-in tubs in the U.S., and the subsequent acquisitions of two independent dealers in 2022, bringing all Safe Step nationwide dealers and install services into Ferguson.
“We continue to complement our organic growth strategy through capability and bolt-on acquisitions that are a cultural fit with our organization,” said Ferguson CEO Kevin Murphy. “These four companies not only expand our geographic footprint, product offering and capabilities, but also add talented associates to Ferguson. Their knowledge and strong customer relationships are an invaluable asset that will help deliver results and grow marketshare.”
Ferguson has a proven track record of successful acquisitions and has completed more than 50 acquisitions in the last five years. The large, fragmented markets in which Ferguson operates comprise 10,000+ small to medium ($10-300 million revenue) independent companies across Ferguson’s nine customer groups in North America.
About Ferguson
Ferguson plc (NYSE: FERG; LSE: FERG) is a leading value-added distributor in North America providing expertise, solutions and products from infrastructure, plumbing and appliances to HVAC, fire, fabrication and more. We exist to make our customers’ complex projects simple, successful and sustainable. Ferguson is headquartered in the U.K., with its operations and associates solely focused on North America and managed from Newport News, Virginia. For more information, please visit www.corporate.ferguson.com or follow us on LinkedIn linkedin.com/company/ferguson-enterprises.
Cautionary note on forward-looking statements
Certain information in this announcement is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements. Forward-looking statements cover all matters which are not historical facts and speak only as of the date on which they are made. Forward-looking statements can be identified by the use of forward-looking terminology such as “will,” “continue,” or other variations or comparable terminology. Many factors could cause our plans to differ materially from those in such forward-looking statements, including, but not limited to: the risk that the initiatives and priorities described in this announcement may be delayed, cancelled, suspended or terminated; weakness in the economy, market trends, uncertainty and other conditions in the markets in which we operate, and other factors beyond our control, including disruption in the financial markets and any macroeconomic or other consequences of political unrest, disputes or war; failure to rapidly identify or effectively respond to direct and/or end customers’ wants, expectations or trends, including costs and potential problems associated with new or upgraded information technology systems or our ability to timely deploy new omni-channel capabilities; unsuccessful execution of our operational strategies; adverse impacts caused by a public health crisis; and other risks and uncertainties set forth under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on September 26, 2023, and in other filings we make with the SEC in the future. Forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with our legal or regulatory obligations, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240522745315/en/
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