Mueller Water Products announced it has signed a agreement to acquire Krausz Industries for $140 million in cash, according to a Mueller Water Products news release.
According to the press release, Krausz Industries provides pipe couplings, grips and clamps under the Hymax brand for the global water and wastewater industries. Founded in 1920, the company is headquartered in Tel Aviv, Israel., has manufacturing operations in Israel, distribution facilities in the U.S. and has 300 employees world-wide. The company also had net sales of approximately $43 million in 2017, approximately 75% of its sales generated in North America.
The transaction is subject to closing conditions and is expected to close in Dec. 2018, according to Mueller Water Products.The company will become part of Mueller Water Products’ Infrastructure segment once the transaction is closed.
The company has a history of growth, profitability and execution through new product development, according to the release. The acquisition aligns with Mueller Water Products’ focus on product and geographical expansion and will also position the company in the 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.”
Danny Krausz, CEO of Krausz Industries, Ltd., is excited to join an organization that shares values of excellence, innovation and customer service.
“We are proud of the company we’ve built and we believe becoming a part of Mueller will benefit our employees and customers,” Krausz said. “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 Water Products management will discuss the fourth quarter and full year 2018 financial results conference call on Tuesday, Nov. 6, 2018 at 9:00 a.m. ET. The call will be live on Mueller’s website and will be archived for approximately 90 days.