ATLANTA — Rheem Mfg. Co. has acquired Heat Transfer Products Group (HTPG) from Monomoy Capital Partners.
HTPG, a manufacturer of commercial refrigeration equipment for the food service, food retail, and other non-consumable markets, hopes to see its products gain a new reach in international markets not currently served by HTPG.
JR Jones, president and CEO, Rheem, said this acquisition means HVAC contractors will now see the “same quality, innovation, partnership, and investment in HTPG as they’ve experienced with Rheem,” leading to a greater confidence in where HTPG is going in the future.
“The acquisition is strategic for Rheem and HTPG’s employees and customers will benefit from the partnership,” Jones said. “Rheem and HTPG have the opportunity to combine an extensive knowledge of heat transfer technology to develop innovative new products.”
One of Rheem’s immediate goals is to reinvigorate the HTPG brand with significant product development, said Jones, with advanced electronics controls being a big factor going forward.
“We’re thrilled about the opportunities ahead to develop innovative new products with HTPG,” Jones said. “Heat transfer technology is core to every product that both companies manufacture, which gives us the right foundation to efficiently advance new product development. Rheem is particularly enthusiastic about integrating advanced electronic controls into new refrigeration products, similar to how we have integrated HVAC, water heating, and pool heating with our recently released EcoNet™ system.”
Rheem has an international business presence in 13 countries and distributes its products to 75 countries. Rheem said there is global demand for HTPG products and this acquisition will help fulfill that need.
“The HTPG product and brand portfolio is an excellent complement to Rheem’s existing portfolio of heating, cooling, water heating, and pool/spa heating products and brands,” Jones said. “HTPG will provide an opportunity to expand Rheem’s distribution reach through the refrigeration distribution channel that often also serves the HVAC market. In addition, the acquisition provides a comprehensive refrigeration product offering that can be distributed internationally. Globally, there is a strong demand for refrigeration products, which will enable us to increase our international sales, customer base, and geographic regions with the addition of HTPG.”
HTPG will be a stand-alone division of Rheem, much like Rheem’s Raypak and Replacement Parts divisions. Its manufacturing operations will remain in Scottsboro, Ala.
“Rheem is constantly evaluating growth-focused activities and the acquisition of HTPG fits perfectly into future plans for Rheem,” Jones said. “A number of Rheem customers sell heating, cooling, water heating, and refrigeration products, and many of these customers are also HTPG customers. This acquisition provides us the opportunity to more closely align with these customers’ businesses and serve their needs more comprehensively.”
Publication date: 1/20/2014
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