Uponor divests U.S. municipal pipe systems business
Uponor Oyj has today divested its shareholding in Uponor ETI Company, a U.S.-based municipal water and sewer systems subsidiary, to PW Eagle Inc., based in Minneapolis, MN. The deal, valued at USD 30-34 million, is part of Uponor’s strategy to reduce exposure to commodity business.
The deal is a major step forward in Uponor’s strategic transformation, releasing capital for the development of the company’s core business, housing solutions. Uponor already offers North America’s leading brands in domestic radiant floor heating and plastic plumbing systems. Uponor ETI holds a strong position in the U.S. municipal pipe markets east of the Rocky Mountains. The company employs a staff of 300 and generated annual net sales of USD 90 million in 2002. Uponor ETI runs four manufacturing facilities in the eastern and central parts of the country.
PW Eagle is a leading U.S. supplier of municipal pipe systems. Its business, focused mainly in the western parts of the country, is well complemented by that of Uponor ETI. PW Eagle’s net sales totalled USD 251 million in 2002. The company is listed on the NASDAQ.
Uponor’s Municipal Americas division will continue to market gas pipe systems in the U.S. and South America.