SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 15, 1998
WATTS INDUSTRIES, INC.
(Exact name of registrant as specified in charter)
Delaware 0-14787 04-2916536
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
Route 114 and Chestnut Street, North Andover, Massachusetts 01845
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (978) 688-1811
N/A
(Former name or former address, if changed since last report.)
Item 5. Other Events.
Watts Industries, Inc. (the "Company") announced today that it plans to
separate its industrial, oil and gas business from its water quality,
plumbing and heating business. A copy of the Company's press release is
attached hereto and incorporated herein in its entirety.
Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits.
(c) Exhibits
Exhibit 99.1 - Press Release of Watts Industries, Inc.,
dated as of December 15, 1998
Signatures
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 thereunto duly authorized.
WATTS INDUSTRIES, INC.
By: /s/ Kenneth J. McAvoy
Kenneth J. McAvoy,
Chief Financial Officer,
Treasurer and Secretary
(Principal Financial and
Accounting Officer)
Date: December 15, 1998
Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
Contact: Kenneth J. McAvoy
Chief Financial Officer
Telephone: (978) 688-1811
Fax: (978) 688-5841
WATTS INDUSTRIES, INC.
TO SEPARATE INDUSTRIAL, OIL AND GAS GROUP
North Andover, MA . . . December 15, 1998. Watts Industries, Inc.
(NYSE Symbol "WTS") today announced that it plans to separate its
Industrial, Oil and Gas business from its Plumbing and Heating and
Water Quality business.
To accomplish the separation, Watts will continue its existing
Plumbing and Heating and Water Quality business and will transfer the
Industrial, Oil and Gas business to a new subsidiary. Watts will then
spin off the new subsidiary to the Watts stockholders in the form of a
pro rata stock dividend.
Upon the spin-off, Timothy P. Horne will remain Chairman and Chief
Executive Officer of Watts. David A. Bloss, Sr., currently President
and Chief Operating Officer of Watts, will be appointed Chief
Executive Officer of the new Industrial, Oil and Gas company.
Completion of the spin-off will be subject to certain conditions,
including receipt from the Internal Revenue Service of a private
letter ruling as to the tax-free treatment of the spin-off, necessary
governmental approvals and any required consents of third parties.
The Company is being advised on the separation by ING/Baring Furman
Selz.
Subject to such conditions, the spin-off would be completed
following receipt of the private letter ruling, which Watts currently
expects to receive in the third calendar quarter of 1999.
NEWS RELEASE
December 15, 1998
Page 2
Timothy P. Horne, Chief Executive Officer of Watts, said, "The
separation of the Industrial, Oil and Gas group will allow that
business to raise capital on more advantageous terms in the public
equity market following the spin-off. The separation will permit
financial markets to better recognize and evaluate the individual
merits of the Plumbing and Heating and Water Quality and Industrial,
Oil and Gas groups, thereby enhancing the likelihood that each
business will achieve appropriate market recognition for its
performance. In addition, the separation will allow each company to
focus on its own strategic business objectives."
Watts Industries, Inc. designs, manufactures and sells an
extensive line of valves for the Plumbing and Heating, Water Quality,
Industrial, and Oil and Gas markets.
