Gabelli Comments On Watts Water Technologies acquisitions

According to Gabelli, Watts Water Technologies WTS completed over 30 acquisitions that contributed significantly to growth since the company became public in 1986. Gabelli reported that an acquisition should have preferred brands that can add to WTS' stable list of name brands or provide an entry to new markets, technologies or geographies. “Financially, the acquisition should be accretive to earnings in the first year of ownership, generate a return on investment in the mid-teens in the second year and should be EVA positive in the third year. 2012 PMV of $58.” Watts Water Technologies closed yesterday at $37.92.