Australia-based Reece Group, parent company of Dallas, Texas-based MORSCO, has acquired Southern California-based distributor Todd Pipe & Supply.

Reece noted Todd Pipe is a strong and well-known business with six branches in attractive growth areas. Reece added the acquisition will complement MORSCO’s existing presence and bring its total number of locations in the region to 23. Todd Pipe brings with it a loyal customer base and a team of experienced leaders, Reece added.

Privately negotiated, following a period of exclusive due diligence, the acquisition comprises consideration of $122 million with a further $38 million deferred until December, 2021, and subject to achieving milestones, Reece said in a company-issued press release.

According to the Reece release, Todd Pipe delivered an adjusted EBITDA of $18.5 million for the 12 months to March 2019.

Reece added the existing Todd Pipe management team will join MORSCO and play an important role in the direction of the business and growth in Southern California.

“Todd Pipe is an example of us acting on opportunities to consolidate the fragmented plumbing market in the U.S. Sun-Belt region,” Reece Group CEO and Managing Director Peter Wilson said. “We acquired MORSCO last year to create a growth platform for the group, and we will do this through organic and considered inorganic opportunities as they arise.”

The acquisition, Reece stated, will be cash and debt funded. The transaction is subject to customary closing conditions and is expected to be complete on Oct. 1.