Ramsey Goodrich

Business Description: HEH Holdings LLC, headquartered in Stratford, Connecticut, is a third generation privately held company focused on water heating and storage systems for industrial and residential applications. The company owns several water heater brands including Hubbell, Vaughn Thermal, and Ace Heaters and has manufacturing operations in Connecticut, Massachusetts, and California. Background: Pursuant to HEH’s strategic plan to expand geographically across North America, RECO USA became an ideal candidate for a potential acquisition. The addition of RECO strengthens the companies’ ability to provide larger capacity water heating and storage solutions to a new set of commercial and industrial customers. RECO’s roots date to 1917 when it was known as the Richmond Engineering Company has become known throughout the industry as a leading manufacturer of ASME pressure vessels and water heaters, capable of designing and building storage tanks up to 15,000-gallon capacity. RECO was a spin out of Virginia American Industries, which sold the majority of its operations to Shamrock Environmental in December of 2020. The company produces both standard and engineered products for various customers across a variety of industries, including process industries, pulp and papermills, electric utilities, and municipal and governmental operations. Solution: Carter Morse & Goodrich was engaged to assist HEH Holdings LLC in its strategic acquisition of RECO USA. The purchase includes all the assets of RECO USA including the 125,000 sq. ft. manufacturing facility on a 15-acre parcel in Cayce, South Carolina. “We believe that RECO has found a great partner in HEH Holdings and are looking forward to its continued success under its new owner,” said former co-owner, Mike Schleinkofer. “We have no doubt that Bill Newbauer and his team at HEH Holdings LLC will remain committed to providing the highest quality products and service to the company’s customers, a commitment that began over a 100 years ago.” Ramsey Goodrich, Managing Partner of CMG, explained “We are thrilled to have advised the HEH Holdings team on this exciting transaction. This is another example of how CMG advises family-held and founder-led businesses on value-added transactions. We look forward to the continued success of RECO USA under the ownership of HEH Holdings.” Bill Newbauer, Chairman and CEO of HEH added “Our advisors at CMG provided invaluable advice and assistance in this transaction. I look forward to working with this talented team as we continue exploring new strategic acquisitions.”

CMG served as the exclusive financial advisor to Hubbell Electric Heater Holdings LLC (“HEH Holdings”) on its acquisition of RECO USA(“RECO”), a manufacturer of high-volume pressure vessels and commercial water heaters located in Cayce, South Carolina.