INDUSTRY news
Mueller Water Products to Divest U.S. Pipe and Foundry Mueller Water Products Inc.,
Atlanta, has signed an agreement to sell U.S. Pipe and Foundry Co. LLC, Birmingham, Ala., to a private equity investment team. “T e divestiture of U.S. Pipe enables us to focus on our higher- margin businesses and newer technology initiatives,” said Gregory Hyland, chairman, president and chief executive offi cer of Mueller Water Products. “T e ductile iron pipe business has been volatile, which has negatively impacted our fi nancial performance and, we believe, masked the true value of our overall business.” U.S. Pipe and Foundry, which
produces ductile iron pipe in the centrifugal casting process, will be sold along with Fast Fabricators LLC (together “U.S. Pipe”) to Wynnchurch Capital Ltd., Chicago, and the Comvest Group, West Palm Beach, Fla. Under the terms of the agreement, an affiliate of Wynnchurch will acquire 100% of the equity interests in U.S. Pipe for $89.8 million in cash, subject to post-closing adjustments and the agreement to reimburse Mueller Water Products for certain liabilities, currently estimated at $10.2 million. Mueller Water Products expects to use the proceeds to pay down debt and for general corporate purposes. The divestiture is expected to close by June 30. “U.S. Pipe is a market leader in its industry and has a well-deserved reputation for quality, service and innovation,” said Terry T eodore, a Partner with Wynnchurch. “We are excited to have this opportunity to invest in U.S. Pipe and partner with... the U.S. Pipe management team to implement a growth strategy that will continue this tradition.” Mueller Water Products
manufactures and markets products and services used in the transmission, distribution and measurement of drinking water and in water treatment facilities. T e company operates primarily through three segments: Mueller Co., U.S. Pipe and Anvil.
May/Jun 2012 | METAL CASTING DESIGN & PURCHASING | 13
U.S. Pipe’s Marvel City Mini Mill was the fi rst new ductile iron casting plant built in the U.S. in 50 years when it was completed in 2008.
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