Watts Water sees pre-tax charges of about $22M related to restructuring

In a regulatory filing, Watts Water (WTS) Technologies disclosed that on February 3, the company’s board 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 $22M, 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 $18M. 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 $16M, 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 $1M in capital expenditures to consolidate operations. Annual pre-tax savings are estimated to be approximately $3M, which the Company expects to fully realize by the end of 2026,” the filing stated.