Badger Meter Explores a Sale
May 04 2016 - 12:20PM
Dow Jones News
Badger Meter Inc., which makes products used in fluid-flow
measurement and control, is exploring a sale.
The Milwaukee company is in the early stages of a sales process
that is expected to draw interest from a number of other industrial
companies, according to people familiar with the matter. As with
all auctions, it may end without a deal.
Badger Meter had a market value of just over $1 billion
Wednesday morning after its shares climbed more than 20%
year-to-date on strong results.
The company manufactures meters and other products that measure
water, oil and chemicals, according to the company's website.
Customers include municipal-water and other utilities and
oil-and-gas companies.
In the first quarter, Badger Meter's sales hit a record $100
million and the company had profit of $7.9 million, a nearly 90%
increase from the year-earlier period. The company attributed the
rise to higher demand for municipal-water products.
Badger Meter was founded in 1905 and has more than 1,400
employees.
While deal-making has been off to a relatively slow start in
2016, the industrial sector has been a bright spot. In January,
Johnson Controls Inc. and Tyco International PLC agreed to merge in
a roughly $15 billion deal that would create a giant provider of
commercial-building systems. In March, coatings company
Sherwin-Williams Co. agreed to buy rival Valspar Corp. for more
than $9 billion. And security-alarm company ADT Corp. agreed to be
bought by Apollo Global Management LLC.
Write to Dana Mattioli at dana.mattioli@wsj.com
(END) Dow Jones Newswires
May 04, 2016 12:05 ET (16:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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