Acquisition enables Rheem to expand its product line and grow the HTPG brand
ATLANTA—Dec. 4, 2013–Atlanta-based Rheem has acquired Heat Transfer Products Group (HTPG) of Scottsboro, Ala., from Monomoy Capital Partners. Rheem is a manufacturer of heating, cooling, water heating and pool/spa heating products for both residential and commercial applications. HTPG is a manufacturer of commercial refrigeration equipment for the foodservice, food retail and other non-consumable markets.
“The acquisition is strategic for Rheem, and HTPG’s employees and customers will benefit from the partnership,” said JR Jones, president and CEO, Rheem. “Heat transfer technology is core to every product that both companies manufacture. 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. Rheem has made a considerable investment in integrating advanced electronic controls into its products, ultimately driving more efficient and better performing systems. The company will engage its capability of electronic controls into the development of future HTPG products.
In addition, Rheem has an international business presence in 13 countries, and distributes its products to 75 countries. Globally, there’s a demand for HTPG’s products, and—with Rheem’s reach—the company is in a prime position to export these U.S.-made products to new customers in international markets not presently served by HTPG.
“A number of Rheem customers sell heating, cooling, water heating and refrigeration products, and many of them are also HTPG’s customers,” added Jones. “Aligning Rheem and HTPG will be a strong combination due to the common customers served and both companies having excellent reputation for quality and reliability.”
HTPG will be a standalone division of Rheem, much like Rheem’s Raypak and Replacement Parts divisions, and its manufacturing operations will remain in Scottsboro. Rheem uses lean manufacturing techniques at all of its facilities throughout North America. The company will further optimize the HTPG facility in Scottsboro for increased effectiveness.
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 88th year of operation, the company manufactures a full-line of eco-friendly, technologically advanced residential and commercial heating and cooling systems; tank, tankless, solar and hybrid heat pump water heaters; whole-home standby generators, controls, swimming pool and spa heaters; indoor air-purification products; and commercial boilers throughout North America and world markets. The company’s premium brands, including Rheem, Raypak, Ruud and Richmond have been recognized with countless industry and consumer awards for reliability, innovative design and high quality.