Headwater Wholesale

What Headwater Wholesale does

Headwater Wholesale, LLC is a regional wholesale distributor serving the groundwater industry across the Midwest United States. The company distributes pumps, tanks, drilling products, pipe, water treatment equipment, wastewater components, and irrigation/turf supplies to professional contractors in water well drilling, irrigation installation, water treatment, and wastewater management. Headwater operates 7 branch locations across Wisconsin (Watertown, Menomonie, Green Bay), Minnesota (St. Cloud), Illinois (Yorkville), North Dakota (Mandan), and Missouri (Springfield, added via acquisition), with in-stock inventory positioned for direct job site delivery. The company serves exclusively professional contractors, not retail consumers, and explicitly addresses working capital constraints through its proprietary On-Site Inventory (OSI) program, which places fully stocked containers on contractor properties with pay-only-when-consumed billing and app-driven replenishment. The HydroLink customer portal provides 24/7 online ordering, invoicing, and account management.

Headwater is a wholly owned subsidiary of Headwater Companies, LLC, which is in turn wholly owned by Franklin Electric Co., Inc. (NASDAQ: FELE), a publicly traded water systems company. The company traces its origins to the spring 2015 formation of 2MDSI, LLC, a joint venture between 2M Company, Inc. and Drillers Service, Inc. Franklin Electric acquired 2MDSI in April 2017 and rebranded it as Headwater Wholesale. Revenue is generated through hardware sales (distribution of water equipment components) and effectively transaction-fee economics on the OSI program, where the company retains inventory ownership until product is consumed by the contractor. Pricing operates on a Net 30 invoice basis with a $25 minimum order, 2% monthly late fees, and EXWORKS shipping terms. The company maintains a network of 100+ vendor partnerships with manufacturers including Franklin Electric, Pentair, A.O. Smith, A.Y. McDonald, and Rain Bird.

Name

Headwater Wholesale

Legal name

Headwater Wholesale, LLC

Website

https://headwaterwholesale.com

Company type

Private

Founded year

2014

Operating status

Operating

Headcount range

11–50 employees

Short description

Headwater Wholesale is a Midwest regional wholesale distributor of pumps, tanks, drilling products, and water treatment/wastewater equipment, serving professional groundwater and irrigation contractors through 7 branch locations with in-stock inventory and a unique on-site container program.

Ownership category

akta.pro rank

Headquarters

HQ city

Madison

HQ country

United States

HQ region

North America

Offices7 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Supply Chain, Operations, Personnel, Infrastructure, Marketing or Sales, Technology or R&D

Revenue model

1. Distribution of water equipment components: Headwater Wholesale generates revenue through distribution of water well, irrigation, water well drilling, water treatment, and wastewater equipment and supplies to professional contractors. Products are sold through 7 branch locations with in-stock inventory ready for job site delivery.
2. On-Site Inventory (OSI) Program: Value-added service where OSI containers are placed on contractor properties. Contractors pay only for products when used, freeing up their working capital. The company retains ownership of inventory until consumed.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels3 records

Core offering

Headwater Wholesale is a regional wholesale distributor of pumps, tanks, drilling products, and accessories serving professional groundwater contractors in the Midwest United States. The company distributes water well, irrigation, water treatment, and wastewater equipment from 7 branch locations, supplemented by the On-Site Inventory (OSI) program that places stocked containers at contractor job sites with pay-only-when-used billing. Customers also access the HydroLink online portal for 24/7 ordering, invoicing, and account management.

Product overview

Headwater Wholesale operates as a wholesale distributor serving the groundwater industry in the Midwest United States. The company offers a portfolio of products and services centered around water well drilling, irrigation, water treatment, and wastewater systems. Its core offerings include the HydroLink Customer Portal for online account management and ordering, the On-Site Inventory (OSI) Program for contractor-side inventory solutions, and a Used Equipment marketplace. The company distributes supplies across multiple categories including groundwater, irrigation/turf, water treatment, and wastewater products through 7-8 branch locations, supported by a network of over 200 vendor partners including manufacturers like Franklin Electric, Pentair, and A.O. Smith. All products are sold exclusively to professional contractors rather than homeowners.

Differentiator

Problem solved

Functional benefit

Products and services

• On-Site Inventory (OSI) Program A container-based inventory solution placed on contractor properties providing 24/7/365 access to water well, irrigation, and wastewater products. Contractors are billed on a pay-only-when-used basis, with Headwater retaining ownership of inventory until consumed. Includes an advanced app for inventory counts and replenishment. Designed for professional groundwater contractors seeking to free working capital and reduce time spent on inventory management.
• HydroLink Customer Portal Online customer portal providing professional contractor accounts with 24/7 access to browse products and pricing, view invoices, pay bills, and place orders. Account setup is coordinated through a Headwater sales representative.
• Used Equipment Listings Online marketplace where contractors can list and browse pre-owned drilling rigs, water trucks, and related machinery.
• Water Well & Groundwater Equipment Distribution Distribution of water well and groundwater equipment components — pumps, pipes, tanks, motors, controls, drilling products, wire/electrical, and accessories — sourced from 100+ manufacturers and supplied exclusively to professional contractors.
• Irrigation & Turf Products Distribution Distribution of irrigation and turf system components from top-tier manufacturers (including Rain Bird) for professional contractors installing residential, commercial, and agricultural irrigation systems.
• Water Treatment Equipment Distribution Distribution of water treatment equipment and components for residential, commercial, and industrial water systems from top-tier manufacturers such as A.O. Smith Water Systems and Pentair.
• Wastewater Equipment Distribution Distribution of wastewater management and septic system products for professional contractors handling residential, commercial, and irrigation wastewater applications.

Named customers1 record

Segments3 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Three partnerships are on record, tiered core and parent company.

• LCA Pump, LLC (Water Works Pump)coreStrategic or Co-development Partner · 31 December 2023On December 31, 2023, Franklin Electric's subsidiary Headwater Companies, LLC acquired substantially all assets of LCA Pump, LLC, operating as Water Works Pump in Springfield, MO. Water Works is a professional groundwater distributor with over three decades of dedicated service to the pump industry.
• Franklin Electricparent companyTechnology or IntegrationFranklin Electric Co., Inc. (NASDAQ: FELE) is the parent company. Headwater Companies, LLC is a wholly owned subsidiary of Franklin Electric. The company leverages Franklin Electric's resources and brand reputation in the water systems industry.
• 100+ Vendor PartnerscoreChannel Partner/ Reseller/ DistributorHeadwater Wholesale partners with over 100 top-tier manufacturers including A.O. Smith Water Systems, A.Y. McDonald, Franklin Electric, Pentair, Rain Bird, and others to deliver industry-leading water equipment products. Categories include Accessories, Commercial/Industrial, Drilling, Groundwater, Pipe, Pumps Motors Controls, Tanks, Turf/Irrigation, Wastewater, Water Treatment, and Wire/Electrical.

Scale indicators3 records

Recent moves9 records

Expansion highlights5 records

Broad incumbents

• Mueller Water Products: A manufacturer of water infrastructure products including valves, hydrants, and pipe fittings. Adjacent to Headwater's distribution focus on water systems equipment and shares customer overlap in the groundwater/municipal water space.
• Ferguson Enterprises: A leading North American distributor of plumbing, heating, cooling, and waterworks products serving contractors and commercial customers. While much larger and broader in scope, Ferguson competes with Headwater in waterworks and plumbing distribution.
• Watsco: The largest US distributor of HVAC and refrigeration products. Operates a comparable multi-branch distribution model targeting professional contractors, though primarily in climate control rather than water systems.
• Johnstone Supply: A US wholesale distributor of HVAC and refrigeration parts and supplies serving professional contractors via a co-op branch network. Comparable in its multi-branch contractor-focused distribution model though concentrated in HVAC rather than water systems.

Direct peers

• Winsupply: A US wholesale distribution company focused on plumbing, HVAC, and water systems serving independent contractors. Comparable business model of multi-branch contractor-focused distribution with regional operating companies.
• Ewing Irrigation & Landscape Supply: A major US distributor of irrigation, landscape, and water management products for professional contractors. Comparable in product mix (irrigation, pumps, water management) and customer profile to Headwater's irrigation and groundwater offerings.
• Core & Main: A leading US distributor of water, sewer, storm drainage, and fire protection products. Core & Main directly competes with Headwater Wholesale in the waterworks distribution space serving contractors and municipalities, with a much larger national footprint.
• SiteOne Landscape Supply: The largest US distributor of irrigation, landscape, and turf products serving professional contractors. Overlaps directly with Headwater's irrigation and turf category, and shares the same contractor customer base with a national branch network.
• Hajoca Corporation: A large privately-held US wholesale distributor of plumbing, heating, cooling, and waterworks products. Comparable in serving professional contractor customers across plumbing and water systems, though broader in category scope.

Others

• Reliance Worldwide Corporation: A manufacturer of water systems and plumbing products (brass fittings, valves, plumbing solutions). Sells through wholesale distribution channels that overlap with Headwater's vendor and customer base, making it an adjacent ecosystem participant.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• Facebookfacebook.com/HeadwaterWholesale
• LinkedInlinkedin.com/company/headwater-wholesale

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Headwater Wholesale