MFRI, Inc. Announces the Sale of Assets of Its Subsidiary, Thermal Care, Inc.
NILES, IL -- (Marketwired) -- 04/26/13 -- MFRI, Inc. (NASDAQ: MFRI)
announced today the signing of a definitive agreement to sell the
domestic assets of its subsidiary, Thermal Care, Inc. to IPEG, Inc.
The transaction is scheduled to close on April 30, 2013, subject to
customary closing conditions. Thermal Care, Inc. designs,
manufactures and sells industrial process cooling equipment,
including chillers, cooling towers, plant circulating systems, and
related accessories for use in plastic processing and general
industrial process applications. In the year ended January 31, 2013,
Thermal Care sales represented approximately 16% of MFRI, Inc.'s
total sales. MFRI, Inc. plans to release its operating results for
its fiscal year ended January 31, 2013 next week.
MFRI CEO Bradley Mautner said: "We established Thermal Care in the
1960's to provide cooling solutions for the rapidly emerging plastics
processing industry. Since that time the company has become a leader
in water auxiliaries for the US plastics industry and offers a
variety of products to serve additional industrial process cooling
needs, such as lasers and heat treating applications. Although we
have nurtured Thermal Care from the beginning and are very proud of
its contributions, we have made the strategic decision to focus our
resources on our two other principal segments, Piping Systems and
Filtration products. The transaction with IPEG, another leading brand
supplier to the plastics industry is a perfect fit for both
companies. It provides expanded opportunities for our Thermal Care
team as they bring their expertise to IPEG's family of products and
the manufacturing of Thermal Care products will continue in our
existing facility in Niles, Illinois. I also want to acknowledge all
of the Thermal Care employees for their efforts in making the company
the industry leader that it has become. I am sure that as part of
IPEG they will continue with their passion for making the best
products in the industry."
IPEG CEO Chris Keller commented: "This acquisition is consistent with
IPEG's multi-brand, multi-channel strategy. It is an investment that
will offer a tremendous growth opportunity for both Thermal Care and
our existing Conair brand. Together, both companies will have over 20
full time engineers focused on heat transfer equipment. Ultimately,
this benefits our customers through the development of new technology
and a broader range of choices in heat transfer equipment, combined
with deep system solutions expertise. I am very pleased to welcome
the highly professional and skilled Thermal Care employees to the
MFRI, Inc. is a multi-line company engaged in the following
businesses: pre-insulated specialty piping systems for district
heating and cooling; oil and gas gathering and transportation and
other applications; custom-designed industrial filtration products to
remove particulates from dry gas streams; and installation of
heating, ventilation and air conditioning for large buildings.
IPEG, a private Pennsylvania based company, is a family of
world-leading products serving the global plastics and recycling
markets. The company goes to market under the Conair, Rapid
Granulator, and Republic Machine brands.
For more information visit the Company's website www.mfri.com or
contact the company directly.
Statements and other information contained in this announcement which
can be identified by the use of forward-looking terminology such as
"anticipate," "may," "will," "expect," "continue," "remain,"
"intend," "aim," "should," "prospects," "could," "position,"
"future," "potential," believes," "plans," "likely," and "probable,"
or the negative thereof or other variations thereon or comparable
terminology, constitute "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934 as amended and are
subject to the safe harbors created thereby. These statements should
be considered as subject to the many risks and uncertainties that
exist in the Company's operations and business environment. Such
risks and uncertainties include, but are not limited to, economic
conditions, market demand and pricing, competitive and cost factors,
raw material availability and prices, global interest rates, currency
exchange rates, labor relations and other risk factors.
7720 North Lehigh Avenue
Niles, Illinois 60714-3491
Phone (847) 966-1000
Fax (847) 966-8563
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