PW Eagle Inc. of Minneapolis plans to buy an undisclosed polyethylene pipe extruder with sales of about $40 million. The acquisition will be made through PWPoly Corp., its segment that specializes in polyethylene pipe, PW Eagle announced in a March 31 news release.
The companies have a nonbinding letter of intent, and PWPoly is conducting due diligence and arranging financing, according to the release. If a transaction is completed, it should close in the second quarter.
Separately, PW Eagle has hired investment banker Goldsmith, Agio, Helms Securities Inc. ``to review other strategic alternatives to maximize shareholder value,'' according to the release.
Scott Long, PW Eagle chief financial officer, said the firm is evaluating a number of alternatives. Co-Chairman Bill Spell may offer details April 5, when the company reports its 2003 results.
PW Eagle has been beefing up its PE pipe business. Through PWPoly, last year it acquired a small equity interest in W.L. Plastics Inc., a maker of large-diameter PE pipe based in Casper, Wyo. On Jan. 16, PWPoly invested $1.6 million to increase its ownership to about 23 percent.