One of the most conservative and tightly-controlled companies on the ASX, the $4.3 billion plumbing and bathroom supplies company Reece Group, has brushed aside fears about buying from private equity owners.
Reece, which runs almost 600 plumbing and bathroom renovation outlets in Australia and New Zealand and is 70 per cent owned by Melbourne's Wilson family, branched out into bigger pipes earlier this week with the purchase of the Viadux business.
It acquired the asset, which supplies large pipes and equipment to the civil construction industry, water utilities and local councils, from private equity firm Crescent Capital Partners. Viadux generated revenues of $100 million-plus in 2016-17.
Reece has been something of a sharemarket darling for several years although its tightly held share register mean that it is thinly traded on the ASX. It more than doubled from below $20 in the past five years and went to above $46 in January, 2017 but has softened slightly to around $43 on expectations that the booming housing and renovations market was starting to cool.
Source : http://www.afr.com/business/construction/asx-king-of-bathtubs-reece-shrugs-off-private-equity-fears-20171004-gyuku1