OK Expected in a Month for Acquisition by Rheem

Federal antitrust approval for Rheem Manufacturing Co.’s proposed acquisition of Raypak Inc. of Westlake Village should take about a month, Raypak chairman William Austin said.

Raypak and New York-based Rheem announced a definitive agreement on the deal last week, but it requires government approval because both privately held companies are in the same business--making water-heating equipment.

When the acquisition is complete, Raypak will be a wholly owned subsidiary of Rheem, with no major changes in management or employment expected, he said.

The sale price was not disclosed, but Raypak said it must pay off nearly $5 million in publicly traded Raypak debt within 90 days of the transaction’s closing. Raypak has annual sales of $24.6 million, and Rheem’s revenue is in the $800-million to $900-million range, according to Standard & Poor’s Register. Rheem is a unit of Pace Industries, also based in New York City.

Austin said Raypak has about 300 workers, most in Westlake Village and some at a factory in Toronto.