Paul Mueller Company Signs Letter of Intent for the Sale of Its Mueller Field Operations, Inc. Subsidiary

SPRINGFIELD, Mo., Dec. 11, 2020 (GLOBE NEWSWIRE) -- Paul Mueller Company, Inc. (Symbol: MUEL) announced today it signed a letter of intent to sell its entire equity interest in its wholly-owned subsidiary, Mueller Field Operations, Inc. (MFO), to the management of MFO. This ends a nearly year-long, national marketing effort with an investment bank. The transaction is expected to close by December 31, 2020.

MFO was organized in 1998 as a Paul Mueller Company subsidiary to enable the company to compete for larger contracts that required tank fabrication on-site and other field-installed equipment. MFO activities and services are different than those of the parent company, and this transaction will allow each to focus on their respective specialties.

Paul Mueller Company is a global stainless steel processing equipment manufacturer. They will continue to focus on shop fabrication of vessels and other equipment at its three manufacturing locations; Springfield, Missouri; Osceola, Iowa; and Groenlo, The Netherlands. Additionally, Paul Mueller Company will continue to operate its subsidiary, DEG Engineering GmbH, in Gelsenkirchen, Germany.

As part of the transaction, the parties will enter into a non-compete agreement and a supply arrangement outlining how the companies will continue to support one another as they have in their history together. This transaction is an opportunity for MFO to build a primary brand and market position.

MFO’s trailing 12-month revenue was $27.6 Million as of September 2020. The sale price of MFO is expected to be $6.6 million with financing provided by the seller. The final details are subject to a definitive sales agreement and post-closing adjustments.

MFO expects to retain all its team members and operate from its present location while searching for a local facility of its own.

“We are excited about this opportunity for Mueller Field Operations and the team of coworkers who have worked so hard over the last 22 years to develop its success,” said Paul Mueller Company President and CEO David Moore.

Jeremy Rogles, President and General Manager of Mueller Field Operations, Inc., said, “Although we will miss our fellow coworkers, this is a great moment for the MFO team. We see the potential for MFO and Paul Mueller Company to continue to thrive together while strengthening our individual objectives. We are passionate about earning our client’s trust, being at their site, and safely completing world-class design-build solutions. On behalf of Mueller Field Operations, thank you for the history, continuing relationship, and support throughout this exciting venture.”

Press Contact: Jay Holden | Paul Mueller Company | Springfield, MO 65802 | (417) 575-9422

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