Paul Mueller Company Signs Agreement to Acquire Licensee
SPRINGFIELD, Mo., April 10, 2008 -- On April 10, 2008, Paul Mueller Company (Mueller) (Pink Sheets:MUEL) executed a definitive Share Purchase Agreement with Rollbas B.V. to purchase all of the outstanding shares of Paltrok Beheer B.V., a wholly owned subsidiary of Rollbas. Paltrok has been the European licensee of Mueller since 1988 for the manufacture and the sale of dairy farm milk coolers using Mueller designs and trademarks. In addition to milk coolers, products fabricated at the facility include processing equipment, beverage equipment, and heat transfer equipment. Paltrok's manufacturing facility is located in Lichtenvoorde, the Netherlands, and is on the site previously occupied by Mueller Europa B.V., a former wholly owned subsidiary of Mueller.
The purchase price consists of EUR 8,300,000 ($12,948,000), plus an additional contingent amount of EUR 4,700,000 ($7,300,000) to be paid from, as defined, cash flows of Paltrok over a period of up to seven years.
The transaction is scheduled to close April 18, 2008. Paltrok has approximately 100 employees, and sales for the year of 2007 were about $26,300,000, and net income for the year was about $2,400,000.
Mueller is one of the leading manufacturers of processing systems and has invested extensively in equipment and personnel to expand its product and service capability, with a focus on providing customers with a complete project solution. The Company has about 1,000,000 square feet of manufacturing space with more than 1,200 employees. The Company has qualified and experienced employees in product development, engineering, and manufacturing, and it produces stainless steel systems designed to meet the highest quality standards for a wide variety of industrial applications, including food, dairy, and beverage processing; pharmaceutical, biotechnological, and chemical processing; heat transfer and heat recovery; HVAC; and thermal energy storage and cooling applications on dairy farms worldwide.
CONTACT:
Paul Mueller Company
Donald E. Golik,
Executive Vice President & CFO
(417) 831-3000
