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Rheem Acquires Chilean Water Heating Manufacturer CEM S.A.

Acquisition increases Rheem's tankless, solar and tank water heating offerings in South America

ATLANTA—Oct. 30, 2014–On Sept. 30, 2014, Rheem acquired CEM S.A., a public Chilean company that manufactures and distributes tankless, solar and tank water heating products. CEM S.A. sells its products under the Splendid brand name throughout South America. Splendid is the most established water heating brand in Chile, and it is also the country's market leader for water heating products.

The addition of Splendid provides Rheem with several competitive solutions to meet consumer demands in South America. Splendid's primary market is Chile, but its products are also sold in Columbia, Peru and Brazil, as well as certain export markets such as Mexico and Spain. Splendid products are sold at stores including Sodimac, Easy S.A., MTS, Construmart and more, as well as through distribution.

"Splendid's outstanding reputation throughout South America, and particularly in Chile, makes it an exciting addition to the Rheem family of brands," said JR Jones, president and CEO, Rheem. "We have immediate plans to grow the brand within the region and beyond. Most international markets employ tankless water heating systems, so there is strong export potential for CEM's line of mechanical tankless water heating products."

Rheem is the largest manufacturer of water heating products in North America, and it is the only manufacturer in the world that produces heating, cooling, water heating, pool/spa heating and commercial refrigeration products. Rheem has an international presence in 14 countries, and the company distributes its products to 75 countries. With Rheem's reach, the company will expand the distribution of Splendid's products to other regions of the world that have similar water heating needs.

CEM S.A. will report into Rheem's Water Heating Division, which is based in Montgomery, Ala. Its portfolio includes tank, tankless, solar and hybrid electric water heating systems for both residential and commercial applications. Rheem will leverage CEM's operation in Santiago, Chile, to expand its presence in South America.

About Rheem (www.rheem.com)
Rheem is privately held with headquarters in Atlanta and U.S. operations in Alabama, Arkansas, California, Indiana, North Carolina and Texas. In its 89th year of operation, the company is a global manufacturer of residential and commercial heating and cooling systems; tank, tankless, solar and hybrid heat pump water heaters; controls, swimming pool and spa heaters; commercial boilers and commercial refrigeration equipment. The company's premium brands include Rheem, Raypak, Ruud, Richmond and Splendid, as well as commercial refrigeration brands Russell, Witt, ColdZone and Kramer, which are part of the company's Heat Transfer Products Group (HTPG) division. Rheem products have been recognized with countless industry and consumer awards for reliability, innovative design and high quality.

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