The reason is, this is a world of one-stop shopping. More important, USF wants to be a major global player. Revenues after the transaction come from industrial equipment, services, and parts. A former stock brokerage executive in the Palm Springs area, Heckmann led an investor group that seized control of the then troubled U.S. Filter. His strategy has been to target companies with strong technologies and market positions in the United States and abroad.
Consolidation is particularly prevalent in the water industry's fragmented market.
Companies are buying other companies to acquire technology, control distribution channels, and guarantee market share. USF has bought about 45 companies in just a little more than five years, including several this year up to the Wheelabrator acquisition. Last year's acquisitions took USF several notches closer to being a one-stop provider, well ahead of expectations. Prior to the Wheelabrator Water Technologies acquisition, USF had about 170 sales and service offices and more than fifty manufacturing and equipment overhaul plants, including a major facility in Whittier, California. Overseas, the company has been busy buying up market share.