Hawkins Completes Acquisition Of Assets Of Surplus Management, Doing Business As WaterSurplus

Key financial highlights:

• The Company also closed on an amended $400 million revolving credit facility with U.S. Bank National Association, JP Morgan Chase Bank, N.A., Wells Fargo Bank, N.A., and Associated Bank, N.A., increasing the size from $250 million and with rates similar to our previous credit facility.
• Hawkins intends to use the cash on hand and available borrowings to fund the acquisition.
• Hawkins proforma leverage ratio will be approximately 1.7x trailing 12-month proforma adjusted EBITDA, leaving significant availability for future tuck-in acquisitions.
• WaterSurplus generated adjusted EBITDA of approximately $10 million for the fiscal year ending December 31, 2024.
• The acquisition is expected to be accretive to Hawkins' earnings per share in fiscal year 2027, and improves the margin profile of Hawkins' current Water Treatment business.