Paul Mueller Company Announces the Sale of Its Mueller Field Operations, Inc. Subsidiary

Rhea-AI Summary

Paul Mueller Company (Symbol: MUEL) has sold its entire equity stake in Mueller Field Operations, Inc. (MFO) to MFO's management for $3.5 million, with potential earn-outs of up to $0.8 million. This transaction, which closed on December 31, 2021, allows both entities to specialize in their respective operations. The deal includes a non-compete agreement and a supply arrangement that ensures ongoing collaboration between the two companies. MFO was established to enable the parent company to pursue larger contractual opportunities requiring on-site tank fabrication.

Positive

• Transaction enables both Paul Mueller Company and MFO to focus on their core specialties, potentially enhancing operational efficiency.
• The sale price of $3.5 million plus the possibility of an additional $0.8 million in earn-outs indicates a positive valuation for MFO.

Negative

• None.

SPRINGFIELD, Mo., Jan. 07, 2022 (GLOBE NEWSWIRE) -- Paul Mueller Company, Inc. (Symbol: MUEL) announced today the sale of its entire equity interest in its wholly-owned subsidiary, Mueller Field Operations, Inc. (MFO), to the management of MFO. The transaction closed on December 31, 2021. The sale price of MFO was $3.5 million with adjustments to working capital to be based on the final December 31 balance sheet, a potential earn-out of $0.8 Million, and financing provided by the seller.

As part of the transaction, the parties entered into a non-compete agreement and a supply arrangement outlining how the companies will continue to support one another as they have during their history together.

MFO was organized in 1998 as a Paul Mueller Company subsidiary to enable the company to compete for larger contracts that required tank fabrication on-site and other field-installed equipment. MFO activities and services are different than those of the parent company, and this transaction will allow each to focus on their respective specialties.

Paul Mueller Company, a global stainless steel processing equipment manufacturer, was founded in 1940 and incorporated in 1946 in Missouri. Mueller® products and services are used in a wide variety of industries including animal health, beverage, brewing, chemical, dairy farm, dairy processing, food, heat transfer, HVAC, oil and gas, personal care, pharmaceutical, pure water, tank fabrication, and wine. Paul Mueller Company and its subsidiaries operate from three manufacturing locations; Springfield, Missouri; Osceola, Iowa; and Groenlo, The Netherlands; with engineering offices in Gelsenkirchen, Germany.

Press Contact: Ken Jeffries | Paul Mueller Company | Springfield, MO 65802 | (417) 575-9000 kjeffries@paulmueller.com | http://paulmueller.com

FAQ

What was the sale price of Mueller Field Operations, Inc. by Paul Mueller Company?

The sale price was $3.5 million, with potential earn-outs of up to $0.8 million.

When did Paul Mueller Company complete the sale of its subsidiary?

The sale of Mueller Field Operations, Inc. was completed on December 31, 2021.

What agreement was made between Paul Mueller Company and MFO after the sale?

A non-compete agreement and a supply arrangement were established to ensure ongoing support between the two companies.

What is the focus of Mueller Field Operations, Inc. after the sale?

Mueller Field Operations, Inc. will focus on its specialized services for larger contracts requiring tank fabrication and field-installed equipment.