The Reece acquisition is set to make Actrol even stronger as the two companies are a good fit.
The $280 million sale of the Actrol Group to Reece proves yet again that this is a company that keeps going from strength to strength. Actrol has a long history in Australia and was part of an independent dealership network as far back as the 1950s.
By the 1970s it was a national network, and in 1979 Actrol became part of Repco
before it was acquired by GSA. It was then purchased by Catalyst Investment Managers in 2010.
With plumbing giant Reece taking ownership, there is nothing stopping Actrol from getting even bigger as the two companies are an ideal fit, industry sources say.
Industry estimates the deal is worth $280 million.
Under Catalyst ownership, revenues at Actrol increased from $110 million to $240 million in the 2013 fiscal year and both parts of the business - Actrol Parts and Actrol Components - will retain their names under Reece.
CCN understands Actrol management held a minority stake in the business, which was also sold as part of the deal.
Reece has stated publicly that the purchase of Actrol is part of a broader strategy to develop its presence in the Australian air conditioning and refrigeration industries.
The company, which is a well-established supplier of plumbing and bathroom products, already has over 400 stores across Australia and more than 3500 staff.
Reece was established in 1919 by Harold Joseph Reece and is a public company.