Widespread word broke during this week’s AD North American Meeting in Grapevine, Texas, that in a blockbuster acquisition, NIBCO has agreed to acquire Milwaukee Valve.
NIBCO said it will release further details upon the transaction’s closing. In the meantime, the Elkhart, Indiana-based manufacturer provided these FAQs regarding the deal.
What are the terms of the acquisition and what is NIBCO acquiring?
A: NIBCO is acquiring Milwaukee Valve Co. While monetary terms of the transaction are confidential, the important point is that NIBCO has agreed to buy the entire company, including all of its products, facilities, human resources and other assets. When the acquisition closes upon NIBCO and Milwaukee Valve meeting closing conditions, Milwaukee Valve will become a wholly owned subsidiary of NIBCO and continue to operate independently.
Why did NIBCO purchase Milwaukee Valve?
A: We believe that NIBCO is perfectly situated to build on and deepen Milwaukee Valve’s long history of high standards for manufacturing excellent products and serving its customers. Our interest in Milwaukee Valve was driven by our admiration for its family-owned culture and long-term performance, which are consistent with NIBCO’s core values. With the perfect fit of the two companies’ history and cultures, we expect a seamless integration.
What are NIBCO’s plans for Milwaukee Valve?
A: NIBCO will retain Milwaukee Valve’s management, manufacturing, sales network, sales representatives, brand and products. We see great value in Milwaukee Valve’s business. We intend to build on Milwaukee Valve’s business, and its fit with NIBCO’s company’s culture and standards will provide for a smooth transition to new ownership. For the foreseeable future, Milwaukee Valve’s existing sales relationships, distribution network and sales staff should not change. Milwaukee Valve’s sales network and staff will continue to sell Milwaukee Valve products.
Does NIBCO have any plans to make changes to Milwaukee Valve’s products or operations following the transaction?
A: No. NIBCO intends to maintain the existing product line of Milwaukee Valve, and to seek the best, lowest-cost manufacturing solutions across both companies’ facilities. A critical strategic goal for this acquisition is to seamlessly integrate Milwaukee Valve’s business and its products, and to build on the goodwill Milwaukee Valve has earned over many years.
When will the transaction close?
A: We expect the transaction to close in the fourth quarter pending regulatory approvals.