PW Eagle Inc. has acquired polyethylene gas pipe maker Uponor Aldyl Co. in a $15 million transaction.
The deal, announced Sept. 2, firms up months of scuttlebutt in the pipe industry that both PW Eagle and Uponor officials consistently denied.
PW Eagle has been working on the deal since at least April, when it announced it was acquiring an undisclosed polyethylene pipe extruder with sales of about $40 million. In late 2003, Uponor Aldyl officials said Aldyl no longer was for sale.
``Finally there's something we could say that was said by both parties today,'' said Frank Bailor, president of Uponor Aldyl, in a Sept. 2 telephone interview.
Officials overall offered few details on the transaction, which is to close by Sept. 30.
Scott Long, PW Eagle's chief financial officer, said the acquisition is consistent with the company's desire to beef up its PE pipe business, known as PWPoly. PWPoly operates its extrusion plant in Hastings, Neb., with a distribution center in Baker City, Ore.
With Uponor Aldyl, PWPoly picks up one other extrusion site in Tulsa, Okla.; and an injection molding site in Shawnee, Okla., Bailor said. Aldyl's business at the end of 2003 had 165 employees with just over $40 million in sales, according to Uponor.
Jyri Luomakoski, Uponor's CFO and deputy chief executive officer, had said in a 2003 interview that its Municipal Americas division was no longer a core business. That division included PVC pipe unit Uponor ETI, which PW Eagle acquired in 2003, and the Aldyl division.
``We no longer consider Uponor a pipe company,'' Luomakoski said in that interview. ``Our goal is to become a leading housing solutions provider.''
Earlier this year, Aldyl won a three-year contract to supply 100 percent of pipe and plastic fittings for member utilities of Enporion Inc., a consortium based in Tampa.
That contract is valued at $9 million per year.