MILWAUKEE, WI, Jan. 5, 2012 -- Badger Meter Inc. (NYSE: BMI) 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 flow meters 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. It gives us a broader and deeper product line and an established customer base. It also provides opportunities for future growth and international expansion," said Meeusen.
"Racine Federated offers its customers a wide range of flow measurement products. With approximately 40% of its business in water-related markets and 60% in markets including industrial, oil and gas, municipal and energy management, Racine Federated is an excellent addition to Badger Meter. The company has an outstanding reputation in the industry, a strong management team and an experienced workforce," added Meeusen.
John Erskine Jr., chairman of Racine Federated, said, "The combination of Racine Federated and Badger Meter will bring many benefits to our customers, including a broader range of flow measurement technologies, products and capabilities. We look forward to continuing to grow the business as part of Badger Meter."
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.
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