Watts Water Technologies Reports Exit/Disposal Costs

Ticker: WTS · Form: 8-K · Filed: Feb 7, 2025 · CIK: 795403

Sentiment: neutral

Topics: restructuring, disposal, costs

TL;DR

Watts Water is booking costs for exiting/disposing of something. Details TBD.

AI Summary

On February 3, 2025, Watts Water Technologies, Inc. reported costs associated with exit or disposal activities. The filing does not specify the exact dollar amount or the nature of these activities, but it indicates a formal reporting of these costs.

Why It Matters

This filing signals potential restructuring or divestitures within Watts Water Technologies, which could impact future financial performance and operational focus.

Risk Assessment

Risk Level: medium — The filing indicates costs associated with exit or disposal activities, which can sometimes signal underlying business challenges or strategic shifts that may carry financial risks.

Key Players & Entities

FAQ

What specific activities are associated with the exit or disposal costs reported by Watts Water Technologies?

The filing does not specify the exact nature of the exit or disposal activities, only that costs are being associated with them.

When did the earliest event related to these exit or disposal costs occur?

The earliest event reported in relation to these costs occurred on February 3, 2025.

What is the principal executive office address for Watts Water Technologies?

The principal executive offices are located at 815 Chestnut Street, North Andover, Massachusetts 01845.

In which state is Watts Water Technologies incorporated?

Watts Water Technologies, Inc. is incorporated in Delaware.

What is the filing date for this 8-K report?

This 8-K report was filed as of February 7, 2025.

Filing Stats: 586 words · 2 min read · ~2 pages · Grade level 13.4 · Accepted 2025-02-07 13:49:37

Key Financial Figures

Filing Documents

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. On February 3, 2025, the Board of Directors of Watts Water Technologies, Inc. (the "Company") authorized a restructuring program with respect to the Company's operating facility in Hautvillers-Ouville, France. The restructuring program is expected to include the shutdown of the foundry at the Company's manufacturing facility in Hautvillers-Ouville, France and the relocation of the facility's other production activities primarily to other facilities of the Company in France and other locations in Europe. The program is expected to include pre-tax charges totaling approximately $22 million, including costs for severance, relocation, facility exit and clean-up and certain asset write-downs, and result in the elimination of approximately 96 positions at the Hautvillers-Ouville, France facility. Severance costs make up the majority of the program costs and are estimated to approximate $18 million. As a result of the facility consolidations, the net headcount reduction in France is expected to be approximately 68 positions. Total net after-tax charges for this restructuring program are expected to be approximately $16 million, of which non-cash charges are immaterial, with costs being incurred through the end of 2026, at which time the restructuring program is expected to be completed. The Company expects to spend approximately $1 million in capital expenditures to consolidate operations. Annual pre-tax savings are estimated to be approximately $3 million, which the Company expects to fully realize by the end of 2026. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: February 7, 2025 WATTS WATER TECHNOLOGIES, INC. By: /s/ Kenneth R. Lepage Kenneth R. Lepage General Counsel, Chief Sustainability Officer, Chief Compliance Officer & Secretary

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