Waterworks, the luxury bath and kitchen brand founded in 1978 by Barbara and Robert Sallick, and led by CEO Peter Sallick since 1993, has been acquired by Restoration Hardware for $117 million. Waterworks includes the Waterworks, Waterworks Kitchen and Waterworks Studio brands, with its products sold via 15 showrooms in the U.S. and U.K., as well as through boutique retail partners, hospitality division and online.
Peter Sallick said, “We enter this new partnership with a great sense of excitement and pride. We have come to know RH, led by its Chairman and Chief Executive Officer, Gary Friedman, as a special company with both the scale to make a difference and the high touch and creative leadership to see the world at a personal level. We've admired RH for their unique partnerships with designers and artisans from around the globe, their ability to reimagine the retail experience through the adaptive reuse of historic and architecturally iconic buildings, and for the passion and innovation they bring to our market.”
“Together with the RH team, whose creativity and market leadership are inspiring, we expect to grow the Waterworks brand in the luxury space while continuing to provide exemplary service to our clients," Barbara Sallick, Waterworks co-founder and Senior Vice President of Design shared. "Robert and I founded Waterworks 38 years ago following in the footsteps of my entrepreneurial father who opened a plumbing supply business in Danbury, Connecticut in 1925. With RH at our side, we anticipate the rewarding adventure of building our company for many generations to come.”
Friedman said, “We are thrilled to add this prestigious brand to our product platform, as it not only positions RH as an authority in two of the most important rooms of the home–the bath and kitchen–but also creates the first fully integrated luxury home platform in the world. There are very few opportunities to partner with a well-managed, growing, double-digit EBITDA margin brand such as Waterworks. This partnership represents a key opportunity to drive long-term growth and value creation for our shareholders.” And Ralph Bennett, Waterworks President, shares, “We believe RH is the most significant brand being built in the home market today, creating extraordinary opportunities for us to collaborate and benefit from their unique and growing platform. As a combined organization, we look forward to extending and expanding our passion, product offer and commitment to outstanding service to our incredibly valuable clients.”
The acquisition is valued at about $117 million, which is subject to changes in working capital and other adjustments. It will be funded from Restoration Hardware’s existing cash balances. The transaction is expected to close during the second quarter of fiscal 2016; until then, both businesses will continue to operate as separate entities.