Boxwood Partners Advises RECO USA on Its Acquisition by HEH Holdings LLC

The sale of the water heater and pressure vessel manufacturer marks Boxwood’s 13th completed transaction of 2021

JUPITER, FL – (January 5, 2022) – Boxwood Partners is pleased to announce the sale of RECO USA (“RECO”) to HEH Holdings LLC, a Stratford, Connecticut based company with operations in Connecticut, Massachusetts, California and South Carolina. The transaction was finalized on December 30.

Boxwood Partners, a leading boutique middle-market investment bank based in Jupiter, FL, acted as the exclusive sell-side advisor to RECO on the transaction. The terms of the deal were not disclosed.

RECO USA was established in 1950 and is headquartered in Cayce, SC. The company manufactures both engineered, built-to-order products as well as a lineup of standard products. Its engineered products include pressure vessels, silos, reactors, and specialty fabrications. The company’s standard products include configure-to-order heat exchangers, clean steam generators, domestic water heating systems and domestic water storage and supply systems. RECO operates out of a 125,000 square foot ASME code manufacturing facility.

“We believe that RECO has found a great partner in HEH Holdings and are looking forward to its continued success under its new owner,” said former Co-Owner, Mike Schleinkofer.  “We have no doubt that Bill Newbauer and his team at HEH Holdings LLC will remain committed to providing the highest quality products and service to the company’s customers, a commitment that began over a 100 years ago when it was formally known as Richmond Engineering Company.”

“Boxwood did an excellent job on this transaction,” said former Co-Owner, Clay Foster.  “This is the second time we’ve had the pleasure of working with Robbie and the team at Boxwood and we couldn’t be happier with the leadership and engagement throughout the process.”

“Having worked with Mike and Clay previously, we understood the expectation and remained committed to finding the right home for RECO,” said Boxwood Partners’ Vice President, Robbie Nickle. “We are confident that RECO will greatly complement the HEH Holdings family of businesses and look forward to its continued growth across North America.”

Greg Bishop and Forbes Thompson of Williams Mullen served as legal counsel for RECO with Sidney Glick and Kelli Wingate of Cherry Bekaert as the accounting advisory.

About Boxwood Partners

Boxwood Partners, LLC, is a boutique investment bank based in Jupiter, Florida with offices in Richmond, Virginia. Boxwood Partners combines a unique blend of senior-level transaction advisory, business operating experience, and proven process execution skills to give its clients a distinct advantage in the market. The firm’s extensive relationships within the global capital and buyer communities (including U.S. and international private equity groups, corporations, and lenders) and other important transaction-related service providers such as consultants, attorneys, and accountants, ensure that the firm’s clients receive the attention, service, and results they deserve.

For more information about Boxwood Partners, please visit www.boxwoodpartners.com

About RECO USA

Established in 1950, and headquartered in Cayce, SC, RECO USA manufactures pressure vessels, columns, towers, ASME storage tanks, and commercial and industrial water heaters. The company produces both standard and engineered products for various customers across a variety of industries, including process industries, pulp and paper mills, electric utilities, and municipal and governmental operations. RECO operates out of a 125,000 square foot ASME code manufacturing facility.

For more information about RECO USA, please visit www.reco-usa.com

About HEH Holdings LLC

HEH Holdings LLC, headquartered in Stratford, Connecticut, is a third generation privately held company focused solely on water heating and hot water storage systems for the Plumbing industry. The company owns several water heater brands including Hubbell, Vaughn Thermal, and Ace Heaters and manufacturing operations in Connecticut, Massachusetts, California and now South Carolina.

See www.hubbellheaters.com, www.vaughncorp.com, and www.aceheaters.com for more information.