Watts Water Technologies, Inc. completed the acquisition of the Industrial Company for Castings and Sanitary Fittings (Saudi Cast) on December 1, 2025. The Riyadh‑based manufacturer, which reports annualized sales of roughly $20 million, will be folded into Watts’ Asia‑Pacific, Middle East and Africa (APMEA) region and will operate under the company’s existing distribution network.
The deal is a strategic fit for Watts’ long‑standing M&A strategy, which has focused on acquiring companies that add complementary products and open new geographic markets. By adding Saudi Cast, Watts gains a foothold in a rapidly growing construction and infrastructure sector in the Middle East, strengthens its presence in the APMEA region, and broadens its portfolio of cast‑iron and stainless‑steel drainage solutions for non‑residential and industrial customers.
Saudi Cast’s operations are supported by ISO 9001:2015 certification and approvals from SASO, DCL and SGS, ensuring that the company meets the high quality and safety standards required in the region. The acquisition was financed entirely with cash on hand, underscoring Watts’ strong liquidity position and its willingness to invest in high‑growth markets.
CEO Robert J. Pagano Jr. said the acquisition “expands our presence in Saudi Arabia and the Middle East and accelerates our vision of delivering innovative, reliable, and sustainable water solutions across global markets.” He added that the integration will be smooth and that the combined entity will be well positioned to capture opportunities in the region’s under‑penetrated drainage market.
Watts’ Q3 2025 earnings beat analyst expectations, with revenue of $612 million versus $576.23 million forecast and EPS of $2.50 versus $2.27 expected. The strong performance, driven by robust demand in core segments, gives management confidence to pursue acquisitions such as Saudi Cast and to raise its full‑year outlook for revenue and operating income.
The acquisition aligns with Watts’ broader strategy of geographic diversification and product portfolio expansion in emerging markets, reinforcing its global distribution network and positioning the company for continued growth in the APMEA region.
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