Badger Meter, Inc. has signed a definitive agreement to acquire Racine Federated, Inc. of Racine, Wis., and its subsidiary located in Thetford, England, for approximately $57 million in cash.
Racine Federated manufactures and markets flowmeters for the water industry, as well as various industrial metering and specialty products. Combined sales for Racine Federated are estimated to be approximately $43 million in 2011.
According to Richard A. Meeusen, chairman, president and chief executive officer of Badger Meter, the acquisition of Racine Federated gives Badger Meter several new flow measurement technologies, strong brands, a robust distribution channel, and skilled employees.
“Building on our acquisitions of Cox Flow Measurement in 2010 and Remag in early 2011, the acquisition of Racine Federated will significantly expand Badger Meter”s global flow measurement business,” said Meeusen in a prepared statement. “It gives us a broader and deeper product line and an established customer base. It also provides opportunities for future growth and international expansion.”
Forty percent of Racine Federated’s business is in water-related markets and 60 percent in markets including industrial, oil & gas, municipal, and energy management.
Racine Federated employs approximately 120 workers at its facility in Racine, Wis. The Racine Federated management team will remain with the company.
Meeusen said the acquisition is expected to be accretive to earnings during the first full year of ownership. The transaction is expected to close in the first quarter of 2012, subject to customary closing conditions.
