Fortune Brands Innovations – an industry-leading innovation company focused on creating smarter, safer and more beautiful homes and improving lives – announced it has acquired SpringWell Water Filtration Systems. SpringWell offers residential whole-home water filtration and water softening solutions via direct-to-consumer channels. And its portfolio of point-of-entry and point-of-use products, including Do-It-Yourself installations, are sold under the SpringWell brand.
The addition of SpringWell paves the way for Fortune Brands to invest and capture opportunities in the approximate $4 billion water filtration and water quality U.S. residential market. And SpringWell increases FBIN’s strategic exposure to recurring revenue streams, and SpringWell’s digital and direct marketing expertise augments Fortune Brands’ established digital capabilities.
SpringWell delivered accelerated growth every year since its founding in 2018 through 2023, resulting in a double-digit five-year CAGR. And SpringWell is expected to deliver accretive EBITDA margins to Fortune Brands.
Fortune Brands completed the acquisition on February 29, 2024, for a purchase price of approximately $105 million, or $92 million net of tax benefits, on a cash-free, debt-free basis, subject to customary adjustments.
The net purchase price of $92 million equates to approximately 8.5x 2023 adjusted EBITDA for the Company before synergies.
KEY QUOTE:
“This acquisition opens opportunities for Fortune Brands to cross-sell our complementary water management products and positions Fortune Brands to continue to strategically expand our whole home water ecosystem enabled by smart, connected products.”
– Fortune Brands Chief Executive Officer Nicholas Fink
