3 companies I have always admired

hot_rod

LAARS, Bradford White and Electro, under one tent now.

I remember years ago when the CEO of Bradford White would do presentations at plumbing wholesalers. When they decided to go through plumbing wholesalers to market.

Same with Electro Industries, find the top brass at trade shows to answer any questions.

Avy Miller started LAARS in 1948, named for his family, wife Roberta, and 3 daughters Lindsey, Andrea, Stephanie.
Starting out in the pool heating business, they became the go to boiler for early radiant systems and snowmelts. Still a good option for snowmelt systems. Copper is second to gold for heat transfer:)

From Mechanical-Hub newsletter

Alan (California Radiant) Forbes

Many early hydronic contractors in the Bay Area used Laars boilers for radiant and many are still in use. Piped directly to the slab with no boiler protection.

Mad Dog_2

That sounds like a good merger.  Mad Dog 🐕 

dko

A very needed and smart acquisition.

Vapor power acquired by thermon beginning of the year
DHT acquired Sussman Electric Boiler division last year
Bosch with the ELSB
US boiler brands releasing electric boilers
More known overseas brands will soon be introducing themselves to take a piece of the pie

Market trends..
Electric boiler market is growing quick

hot_rod

dko said:

A very needed and smart acquisition.

Vapor power acquired by thermon beginning of the year
DHT acquired Sussman Electric Boiler division last year
Bosch with the ELSB
US boiler brands releasing electric boilers
More known overseas brands will soon be introducing themselves to take a piece of the pie

Market trends..
Electric boiler market is growing quick

I think Viessmann bought or merged an electric boiler company also. One of Groundup's favorite as I recall

Alan (California Radiant) Forbes

And Viessmann was purchased by Trane.

Steamist is now Delta.

hot_rod

Alan (California Radiant) Forbes said:

And Viessmann was purchased by Trane.

Steamist is now Delta.

I think similar technology companies combining can work out well.

When investment firms gobble them up and base all decisions on ROI, things can go south. Kinda like house flippers.

jumper

In my day Raypack was markedly superior to TeledyneLaars.
The former sometimes outlasted CI for heating. Believe it or not?
In those days CI was less expensive than copper tube. Believe it or not?
But copper tube was way easier to carry downstairs.

I never understood how so many HHW boilers survived.

psb75

Viessmann was acquired by Carrier.

GroundUp

I just heard about this yesterday. As someone who's installed several hundred Electro boilers and even took part in the development of 2 of their product lines, this worries me. Electro has always been a very "mom and pop" operation and the crew over there treats their customers like family. I've got my fingers crossed that it doesn't go crazy corporate like Laars and Bradford, but I'm not holding my breath.

And regarding the "Viessmann" electric boiler, it is a complete piece of crap sourced from NextGen.

clammy

I become vary when companies start getting brought up and joining ranks it mostly seems the bean counters sharping the pencil ,increasing profit and market share to attempt to increase there visibility of there products in a marketplace. Reminds me a recent ancient history and northern carpet baggers going down south to do nothing but undermine the economy and profit ,feel familiar to me ? Personally I don’t see them selling more being the supply house which carry them really don’t have much on hand when it comes to our end of the bussiness but as for show rooms w high end fixtures w nice profitable mark up well your at the right place and a always a nice sale women to ease the home owners check books open only to try to get it installed for zippo .
I ve always felt that merging and gobbling up small bussiness did no good except make some a ton of money and usually a bunch of people are out of work when the manufacturing closes up and moves else where . I’m a big one on if your bussiness cannot support its self then it should not be and it should not be given finically aide to help it exist if it needs that then its goods or products are not worthy being they cannot support there existence ? I though monopolies where illegal but eventually isn’t this where it all is heading one corporation controlling goods and services . I see it in just bout everything and not really liking any of it .
Mergers and acquisition dirtier work then dismantling a sooted out oil boiler and replacing being the results are known w one and unknown w the other .
Peace and good luck clammy

dko

I'm sure they will stay independent in the way they are with Laars. Probably rebrand some units under the Bradford White and/or Laars name. Reps are remaining the way the are, all brands have separate reps. No changes for customers.

josephny

This is fascinating (I enjoy business).

For anyone else who doesn't know (I might be the only one here):

LAARS manufactures a broad line of oil, gas and electric fueled residential and commerical boilers, domestic hot water heaters and pool water heaters. They are based in Rochester, NH and are a subsidiary of Bradford White (also a manufacturer of boilers, water heaters and pool heater (among other things)), which bought LAARS for $24.3MM in 2005. LAARS latest revenue reports show gross revenue of $54.3MM.

LAARS acquired Electro Industries (Monticello, MN), a manufacturer of electric boilers, heat pumps. Electro's latest revenue is shown to be $7.3MM

I obviously do not know their product line well, but a cursory look seems like there is substantial overlap. I wonder if this acquisition trend is geared more towards cost cutting than capturing greater market share (possibly of an expanding market) through a broader product line?

jumper

Laars was one of many Teledyne companies. Teledyne strategy was for each company to be no more than about 300 employees so that management didn't become a bureaucracy. When some businesses had to downsize from shrinking market or growing competition then combining or selling are only options. For example Teledyne owned two different engine manufactures but eventually....

AO Smith & Laars may have been earlier in copper tube boilers but Raypak ate their lunch with superior products and service. Now Raypak is a niche division of Rheem.

I think that it was the rapid inflation of the seventies that turned many small businesses into zombies. For example boilermakers could fabricate boilers when they weren't busy repairing them. I know we don't discuss $$$$ but the gross revenue required to survive in 1979 was a multiple of what was needed in 1971.

hot_rod

I suspect both their electric boiler offering their duct heaters, and the heat pump expertise are some of the reasons that boiler companies would be interested in Electro.

The boiler companies could start from 0 and build the electric and heat pump side offerings or combine with a company that is already a leader

Or it could be the family that started Electro was ready to cash out on the business they build. Kick back and enjoy life?