Mueller Water Products, Inc. (NYSE: MWA) recently announced that it has signed a definitive agreement to acquire Krausz Industries, Ltd., a manufacturer of pipe couplings, grips and clamps, for $140 million in cash.
Krausz Industries provides a full suite of innovative and proprietary pipe couplings, grips and clamps under the HYMAX brand for the global water and wastewater industries. The Company was founded in 1920 and is headquartered in Tel Aviv, Israel, with manufacturing operations in Israel, distribution facilities in the U.S., and 300 employees world-wide. Krausz had net sales of approximately $43 million in 2017 with approximately 75 per cent of its sales generated in North America.
The transaction is subject to customary closing conditions and is expected to close in December 2018.
Once the transaction has closed, Krausz Industries, Ltd. will become part of Mueller Water Products’ Infrastructure segment. Krausz’s product line of pipe couplings, grips and clamps are designed to address repair or pipe connection needs across a broad range of applications, pipe sizes and pipe materials.
Krausz has a history of growth, profitability, and execution through new product development. The acquisition aligns with Mueller Water Products’ strategic focus on product and geographical expansion, and is complementary from product, distribution, customer, and manufacturing perspectives. This acquisition will also position Mueller in the growing pipe repair market.
“For over a century, the Mueller name has been synonymous with quality products and innovation,” said Scott Hall, president and CEO of Mueller Water Products. “The Krausz name has a strong legacy and is known for its high-quality products in the U.S. and internationally. The addition of pipe connection and repair to our solution portfolio enables us to address an even broader scope of needs within the water infrastructure system, while expanding our global presence.”
“We are excited to join an organization that shares our values of engineering excellence, innovation and customer service,” said Danny Krausz, CEO of Krausz Industries, Ltd. “We are proud of the company we’ve built and we believe becoming a part of Mueller will benefit our employees and customers. We look forward to the next chapter as we continue to design and build mission-critical and innovative products and technologies for the water industry.”
Mueller management will discuss the proposed acquisition during the fourth quarter and full year 2018 financial results conference call on Tuesday, November 6, 2018 at 9:00 a.m. ET. The conference call will be webcast live on Mueller Water Products’ website and will be archived for approximately 90 days.