MONTREAL, Nov. 24 /CNW/ -- Deschenes Group Inc. (DGI) has signed an Asset Purchase Agreement to acquire the Mueller Flow Control (MFC) division of Mueller Canada Ltd. from Anvil International, L.P. Anvil International is a subsidiary of Mueller Water Products, Inc. (NYSE: MWA).
The acquisition is subject to regulatory approval and customary closing conditions. It is expected to close in early January 2010.
MFC is a leading wholesale distributor of pipe, valves and fittings, as well as waterworks, HVAC, fire protection and piping component products in Canada with 17 locations and 216 employees.
Martin Deschenes, president of DGI has stated that "This transaction is the key to our expansion throughout Canada. We are confident that the synergies developed by the acquisition will provide a great opportunity for growth to both MFC and DGI. It is our philosophy that the success of a distribution business is built on the quality of its people and the quality of its service. We are very proud of the accomplishments of our valued personnel and are privileged to welcome the addition of MFC's strong and well reputed team."
Tom Fish, president of Anvil International, added that the transaction allows both companies to focus on their strengths while maintaining a strong working relationship.
"Anvil's strength as a manufacturer and Deschenes' strength as a leading distributor complement one another," said Fish. "This transaction allows us to focus on our manufacturing and sourcing operations while leveraging our relationship with Deschenes."
Safe Harbor Statement
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results in future periods of Mueller Water Products to differ materially from forecasted results. Those risks include, among others, changes in customer orders and demand for our products; changes in raw material, labor, equipment and transportation costs; pricing actions by the Company and its competitors; changes in law; the ability to attract and retain management and employees; the inability to successfully execute management strategies with respect to cost reductions, production increases or decreases, inventory control, and the integration of acquired businesses; and general changes in economic and financial conditions, residential and non-residential construction, and municipal spending. Risks associated with forward-looking statements are more fully described in our filings with the Securities and Exchange Commission. Mueller Water Products assumes no duty to update its forward-looking statements as of any future date.
About Deschenes Group Inc.
Deschenes Group Inc. is the third largest Plumbing, Heating, HVAC/R and Water works distributor in Canada, and the largest Canadian owned. It is essentially owned by the Deschenes Family. DGI, with close to 70 years of history, serves more than 12,000 customers in Quebec, Ontario, and with a partner in Saskatchewan and Alberta, through more than 80 branches. With a truck fleet in excess of 160 vehicles delivering everyday to professional trade customers, DGI is recognized as one of the leaders in the markets it serves. All locations share the common attributes of being well managed and having highly motivated people who are customer focused.
About Mueller Water Products, Inc.
Mueller Water Products, Inc. is a leading North American manufacturer and marketer of infrastructure and flow control products for use in water distribution networks and treatment facilities. Its broad product portfolio includes engineered valves, fire hydrants, ductile iron pipe and pipe fittings, which are used by municipalities, as well as the residential and non-residential construction, oil & gas, HVAC and fire protection industries. With latest 12 months net sales as of September 30, 2009 of $1.4 billion, the Company is comprised of three operating segments: Mueller Co., U.S. Pipe and Anvil. Based in Atlanta, Georgia, the Company employs approximately 5,300 people. The Company's Series A common stock trades on the New York Stock Exchange under the ticker symbol MWA. For more information about Mueller Water Products Inc., please visit the Company's Web site at www.muellerwaterproducts.com.
For Deschenes Group Inc.
President and CEO
Vice President, Human Resources
Vice President, Operations
For Mueller Water Products, Inc.
Investor Contact: Martie Edmunds Zakas Sr. Vice President - Strategic Planning & Investor Relations
Media Contact: John Pensec
Director - Corporate Communications & Public Affairs
SOURCE MUELLER WATER PRODUCTS, INC.
For further information: For further information: For Deschenes Group Inc., Martin Deschenes, President and CEO, email@example.com, Marc Lapierre, CFO, firstname.lastname@example.org, Benoit Berthelot, Vice President, Human Resources, email@example.com, Joe Senese, Vice President, Operations, firstname.lastname@example.org; or For Mueller Water Products, Inc., Investor Contact: Martie Edmunds Zakas, Sr. Vice President - Strategic Planning & Investor Relations, +1-770-206-4237, email@example.com, Media Contact: John Pensec, Director - Corporate Communications & Public Affairs, +1-770-206-4240, firstname.lastname@example.org Web Site: http://www.muellerwaterproducts.com