American Standard to separate its three businesses
Piscataway, N.J. -- American Standard Companies Inc. announced that its board of directors has completed a strategic review of the company and unanimously approved a plan to separate its three businesses this year.
“The board has concluded that separating American Standard into three focused, better understood companies will create greater shareowner value than the current structure,” said Fred Poses, chairman and CEO. “The businesses have the size, global reach, industry leadership and organizational talent to succeed as separate companies.”
Upon completion of the plan, American Standard will focus on its global market-leading air conditioning systems and services business with 2006 sales of $6.8 billion and will change the company’s name to Trane, the company’s flagship air conditioning brand. The company plans to spin off its global vehicle control systems business with 2006 sales of $2 billion as an independent, publicly traded company, expected to be known as WABCO. It plans to implement the spinoff through a tax-free stock dividend of all WABCO common stock to American Standard shareowners, who would receive one share of WABCO common stock for every three shares of American Standard common stock currently owned.
In addition, American Standard plans to sell its bath and kitchen business with 2006 sales of $2.4 billion.
The company expects to complete both the spinoff of WABCO and the sale of Bath and Kitchen by early fall of 2007.
“We’ve come a long way since the company went public in 1995,” said Poses. “Over the past 12 years, we’ve generated average annual total shareowner returns of about 18%. Over the past seven years, we reduced our debt by more than $1 billion, achieved investment grade ratings, and established our quarterly dividend and subsequently increased it. At the same time, we invested in our businesses to strengthen their overall capabilities.
“Looking to the future, our board concluded that the separation plan we are announcing today is the best way to enhance shareowner value. Operating separately, the businesses will benefit from greater strategic focus, increased market recognition, improved capital flexibility, and an increased ability to attract, retain and motivate employees.”
“In the quarter, both Air Conditioning Systems and Services and Vehicle Control Systems delivered strong results,” explained Poses, “even though we saw lower sales of residential air conditioning products compared with a year ago when our distributors were loading in new 13 SEER products to prepare for the industry’s conversion to higher energy efficiency standards in January 2006. Warm weather in the quarter also slowed furnace sales. During the quarter, Bath and Kitchen stabilized its sales and made significant operational progress under its new leadership team, and we’ll start to see the financial benefits during 2007.
“For 2007, we are providing estimates for the company as currently structured without considering the impact of the planned spinoff or sale or related separation expenses. On that basis, we anticipate sales growth of about 8% in constant currencies and net income per diluted share of $3.15 to $3.25 on both a GAAP and adjusted basis, representing an increase of 20% to 24% on a GAAP basis and 18% to 22% on an adjusted basis. These estimates are driven by continued strength in commercial air conditioning systems and services and an improvement in the residential air conditioning market despite lower housing starts, coupled with continued strength in vehicle control systems and some improvement in the bath and kitchen business. For the year, we expect to generate about $950 million in net cash provided by operating activities and about $650 million in free cash flow for the company as currently structured.”
“For the first quarter, sales should be up about 6% and net income should be in the range of 45 to 49 cents per diluted share on a GAAP basis and 48 to 52 cents on an adjusted basis,” Poses said. In first quarter 2006, net income per diluted share was 40 cents on a GAAP basis and 43 cents on an adjusted basis.”
The sales process for the company’s bath and kitchen business was expected to begin in February. Proceeds from the sale are expected to be used to reduce the liabilities of the remaining company (Trane) and to repurchase Trane’s common stock.
Until the sale and spinoff are completed, American Standard expects to continue to pay its quarterly dividend of 18 cents per share. Trane and WABCO are expected to have capital structures and financial policies consistent with investment grade ratings. The company expects that Trane and WABCO will initially pay dividends that in total approximate the dividend currently paid by American Standard. However, once WABCO is spun off, its board will determine its dividend policy.
Trane’s headquarters will remain in Piscataway, N.J., and the company will continue to trade on the New York Stock Exchange using a new stock symbol to be announced later. WABCO will be a U.S. company, with executive and administrative offices in Brussels, Belgium, and Piscataway. It is also expected to be listed on the NYSE.
The company will retain the right to use the American Standard brand name for its HVAC products.
Completion of the proposed separation is subject to final approval by American Standard Companies’ board of directors. Approval by American Standard Companies shareowners is not required for either the spinoff or sale. When implemented, the separation plan will not trigger “change-in-control” accelerated benefits for any officers or employees of the company. The company is communicating with the European Works Council about the board’s strategic review and intent.
Fred Poses will continue as chairman and CEO through 2007 as planned, and an internal and external search is under way for his successor. The current directors of American Standard Companies, with the exception of lead director Jim Hardymon, are expected to continue as board members of the company when it changes its name to Trane. Hardymon, in accordance with the company’s governance guidelines, will retire from the board in May. Leaders of Air Conditioning Systems and Services -- Craig Kissel, president of commercial systems, and Dave Pannier, president of residential systems -- continue in their roles.
Jacques Esculier, president of Vehicle Control Systems for the past three years, will become CEO of the independent, public company to be known as WABCO. Hardymon will serve as WABCO’s non-executive chairman. Pete D’Aloia, American Standard’s chief financial officer, will continue in his role and also become a WABCO board member.
Dale Elliott, president of global Bath and Kitchen, will continue in his role, as will the regional business presidents: Don Devine, Americas; John Rietveldt, Europe, Middle East and Africa; and Richard Ward, Asia Pacific.
For more information, visit www.americanstandard.com.
Bosch acquires FHP Manufacturing
Stuttgart, Germany -- As a part of its strategy to strengthen the company’s Thermotechnology division and gain better access to the rapidly growing U.S. market for electric geothermal heat pumps, Bosch has acquired FHP Manufacturing Company of Fort Lauderdale, Fla. FHP is one of the leading U.S. manufacturers of these systems in the renewable-energy field.
Bosch has acquired all shares of FHP Manufacturing Company from a group of investors led by G.L. Ohrstrom & Co. Inc. The purchase price will not be disclosed. FHP will be integrated into the Thermotechnology division led by BBT Thermotechnik GmbH, which also holds a strong position in the European market for electric heat pumps.
“With the acquisition of FHP, our growth trajectory in the promising renewable-energy segment is now strengthened in the attractive U.S. market,” said Dr.-Ing. Joachim Berner, president of the Thermotechnology division. “Because of their energy-efficient and environmentally friendly technology, electric geothermal heat pumps have great potential worldwide.”
Following the acquisition of the Swedish IVT Industrier AB in January 2005, FHP is Bosch’s second acquisition in the field of electric heat pumps. Established in 1969 and employing a workforce of roughly 220, FHP Manufacturing generated sales of about $51 million in the fiscal year 2005/2006. The company is one of the leading American manufacturers of electric water-source heat pumps for the heating and air-conditioning of residential buildings and commercial premises. The product range includes systems with an output of up to 220 kilowatts.
There is clear growth potential for water-source heat pumps in the U.S. Electric geothermal heat pumps for residential buildings in particular are expected to see double digit growth in the next few years. This favorable development will primarily be driven by the water-source heat pump’s high-efficiency and cost-saving potential when compared to the heating and air-conditioning systems traditionally used in the U.S.
The total market volume for water-source and geothermal heat pumps in the U.S. is about $400 million, with geothermal heat pumps accounting for some $100 million. BBT Thermotechnik expects the U.S. market for water-source heat pumps to grow at an average rate of 10% thru 2013. A 16% growth rate is expected in the market segment of geothermal heat pumps.
FHP will remain a legally incorporated company but will be integrated into the organization of the Bosch Group’s Thermotechnology Division as a wholly-owned subsidiary of the Bosch Group. Integration of the FHP Manufacturing organization will be forthcoming over the next few months. The company will continue to be led by the current management team.
The acquisition should be seamless and transparent for existing Bosch and Buderus customers. The company’s main target is to maintain and even expand its services, the product quality, and the innovative capacity customers have experienced in the past.
According to Bosch officials, the existing sales and support channels remain in place. All products continue to be available at the known terms and will benefit from further development.
For more information, visit www.bosch.us.
Central States Group acquires Mueller Sales
Omaha, Neb. -- Central States Group has acquired Mueller Sales Corp. of New Hope, Minn. The acquisition includes offices in Brookfield, Wis., and Cedar Rapids, Iowa.
Mueller, an instrumentation and controls distributor founded in 1946, will complement Central States’ mix of fluid handling and process control products and services in Nebraska and Iowa, while continuing to service the Wisconsin and Minnesota areas’ instrumentation markets.
Michael Vezina has been named general manager of the Mueller Sales Division as well as being a Central States Group vice president.
For more information, contact Central States Group chairman/CEO H. Steve Anderson at 402/ 894-1003 or e-mail sanderson@csgmail.com.
Ferguson opens new showroom in Idaho
Newport News, Va. -- Ferguson opened its newest showroom in Hailey, Idaho, on November 1, 2006, giving customers the opportunity to choose from an endless selection of high-end plumbing products. Located at 120 Jetstar Lane, the 2,000-square-foot showroom features a first-class gallery with fully functional displays and the latest in the plumbing industry.
Ferguson’s showrooms are designed with customers in mind and offer a vast selection of plumbing products and fixtures from today’s most recognized manufacturers. Highly trained consultants are available to help customers create a personalized, custom look in their homes or businesses. Consultations are encouraged and can be scheduled by calling the showroom at 208/788-3317.
For details, visit www.ferguson.com.
HARDI to form Hydronics & Radiant Heat Council
Columbus, Ohio -- It is estimated that nearly a third of Heating, Air-conditioning and Refrigeration Distributors International’s 450 total distributor members sells hydronic/radiant heat products. In reaction to the growing importance these products have among HARDI distributors, the board of directors voted unanimously to create a new Hydronics & Radiant Heat Council.
HARDI’s councils, as versus its operationally-focused committees, are centered on specific product groups and bring together the manufacturers of such products and current or interested distributors to discuss product- and system-focused issues, challenges and trends. This new council will be especially important for members in the Northeast, Great Lakes and Mountain regions where the residential markets, in particular, rely heavily on such products. Its first formal meeting will be at the Northeast/Mid-Atlantic regional meeting in Galloway, N.J., May 6-9.
Participation in HARDI councils is open to any distributor, manufacturer or service vendor member company. The councils generally hold two in-person meetings per year, and both the councils and committees hold frequent teleconferences throughout the year as new information or new topics arise.
For details, visit www.hardinet.org.
Home Depot, investor reach agreement; consider future of HD Supply
Atlanta -- The Home Depot® and Relational Investors LLC -- led by Ralph Whitworth, who has been critical of the direction Home Depot’s management and board have taken in recent years -- have reached an agreement on corporate governance matters. As part of the agreement, David H. Batchelder, a principal of Relational, joined Home Depot’s board of directors on February 22, in turn, and Relational agreed to drop its proxy contest. Batchelder also will be appointed to the Leadership Development and Compensation Committee and to the Audit Committee.
In announcing the agreement, Ralph Whitworth, principal of Relational, and Frank Blake, chairman and CEO of Home Depot, said, “We are very pleased to have reached this understanding, which will give The Home Depot the benefit of Relational’s strategic business advice without a costly and distracting proxy solicitation by Relational.”
Relational and Home Depot have agreed that for the next three years, so long as Relational continues as a significant shareholder of the company, the board will nominate and support Batchelder or, if he is not available to serve, another person recommended by Relational, as a director, and Relational will support each slate of directors nominated by the board. Relational will not support or participate in any “withhold the vote” or similar campaign; Relational will not nominate any candidates for election to the board; and Relational will not submit proxy resolutions or conduct any proxy solicitations. There is no agreement with respect to what position Batchelder or Relational will take on any other matters, or how he or it will vote on any other matters.
“We have been actively listening to our shareholders and look forward to continuing the dialogue,” said Blake. “The board has taken action, and we welcome David’s strategic input in our endeavors to move this company forward to the benefit of all our associates, customers and shareholders.”
This agreement follows actions taken by Relational in December 2006 to solicit proxies for a resolution to be brought before The Home Depot’s annual meeting seeking an independent committee to evaluate strategy and to elect nominees of Relational to The Home Depot board. Under the agreement, Relational has withdrawn its resolution and will not solicit proxies at this year’s annual meeting.
“We commend the board for demonstrating accountability and responsibility in responding to, and collaborating with, shareholders like Relational,” said Batchelder. “We are encouraged by actions already initiated by Frank Blake and the board such as store reinvestment and corporate governance improvements. We look forward to working together to further strengthen the business and deliver strong returns to all shareholders.”
Under the agreement, the company reiterated its commitment that the retirement age for directors Kenneth G. Langone, Milledge A. Hart, III, John L. Clendenin and Claudio X. Gonzalez will not be extended beyond the 2008 Annual Meeting. The retirement age was waived for Hart, Clendenin and Gonzalez for the 2007 term. This decision was made in order to retain the board members’ experience and deep knowledge of the Company’s business and key personnel to help ensure a smooth management transition after the appointment of Blake as the company’s new chairman and CEO on January 3. Also, in identifying successors for these directors, the board will seek input from the company’s shareholders.
Batchelder is a director of Washington Group International and ConAgra Foods. He has served on seven other public company boards during his 25-year career, influencing corporate strategy and assisting management teams unlock value.
Relational, which owns approximately 26.5 million shares of Home Depot, is a private investment advisor with $7.5 billion under management. Founded by Batchelder and Whitworth, Relational manages assets for major institutional investors from North America, Europe and Asia.
Home Depot announces strategic evaluation of HD Supply
The Home Depot announced in mid-February that the company and its board of directors have decided to evaluate strategic alternatives for its HD Supply business, including a possible sale, spin or initial public offering. The company said there can be no assurance that any transaction will occur or, if one is undertaken, its terms or timing.
Home Depot has retained Lehman Brothers as its financial advisor to assist in this process. The company stated that it does not expect to update its progress or disclose developments with respect to the exploration of HD Supply strategic alternatives unless the board of directors approves a definitive transaction.
“Today’s announcement is a continuation of the strategic review we did in November,” said Frank Blake, chairman and CEO of The Home Depot. “We are undertaking this action today because of our desire to increase our focus on our retail business. With annual revenues of approximately $12 billion, HD Supply is a healthy, growing and vibrant business, and we are undertaking this evaluation to determine whether there are strategic alternatives with respect to HD Supply that would optimize shareholder value.”
HD Supply, the wholesale distribution business of The Home Depot, has nearly 1,000 locations nationwide and in Canada, and employs more than 26,000 associates.
This potential sale comes just six weeks after the resignation of former CEO Robert Nardelli, who led the charge in diversifying the giant retail into the wholesale arena. It could indicate that Home Depot’s leadership wants to move the company’s focus back to its retail business.
While Nardelli believed the wholesale business would provide new growth for Home Depot, profit margins are much lower in the supply business than in retail, which left investors non-plussed.
Industrial Controls opens new office in Atlanta
Wanamassa, N.J. -- Industrial Controls Distributors LLC, a leading distributor of HVAC, process instrumentation and valves, opened a new regional office in Atlanta.
The strategic location allows Industrial Controls to better serve their already extensive customer base in Atlanta and positions it for future growth. Joe Eichelberger, president of Industrial Controls, said, “We are excited to open our third new branch in the past three years. Atlanta is a vibrant and growing market. We are making this commitment to improve our service and support to our customers.”
Lorraine Good, who leads the office, brings 15-plus years experience as a sales engineer with a degree in electrical engineering to her new role. Industrial Controls looks forward to leveraging Good’s knowledge and experience, and their new local presence in the area as catalysts for record sales in 2007.
Industrial Controls, headquartered in Wanamassa, N.J., with 11 offices covering 22 states throughout the U.S., is an authorized distributor and stocking representative for the industry’s leading lines of HVAC controls, process instrumentation and valves. Industrial Controls is among the top distributors in the country for ABB/Fischer & Porter, Ashcroft, ASCO, Belimo, Burns Engineering, Dwyer, Hancock, Honeywell, icon, Johnson Controls, Siemens, Triac, Tyco, Warren Controls, Yamatake and Yarway.
Industrial Controls new office is located at 3330 Cumberland Blvd., Suite 500, Atlanta, GA 30339 and can be reached by phone at 800/229-3960. For additional information, visit www.industrialcontrolsonline.com.
Intellidyne expands sales efforts to Canada
Glen Cove, N.Y. -- Intellidyne LLC, a leading developer and manufacturer of energy-saving controls for commercial and residential heating, air-conditioning and refrigeration applications, is expanding north of the border to open Intellidyne Canada Ltd. The new entity will be headed by John Poirier, who will serve as general manager.
Poirier has more than 20 years of strategic business experience throughout Canada. He has worked with companies to spearhead new ventures and direct initiatives in the energy markets and has most recently served as president of the Canadian Energy Conservation Group.
Intellidyne’s patented IntelliCon technology reduces energy consumption by from 10% to 30% by optimizing system performance through real-time “load-demand” analysis and control.
The performance of Intellidyne products has been validated by performance testing at internationally recognized research facilities including Brookhaven National Laboratories, Brooklyn Union (KeySpan) and Freeport Electric, with extensive field-testing conducted by the Canadian Energy Conservation Group. Intellidyne products are safety listed by the ul in the U.S. and Canada as “Energy Management Equipment.”
For more information, visit www.intellidynellc.com.
Johnson Controls marks one-year anniversary of York acquisition
Milwaukee, Wis. -- In December, Johnson Controls Inc. celebrated the one-year anniversary of its acquisition of York International Corp. The company held a “One Year Later” media event on January 29 at the AHR Expo in Dallas. The event highlighted accomplishments that positively impact the HVACR industry, distributors and customers of the combined business.
The December 2005 acquisition of York increased the revenues of Johnson Controls’ global Building Efficiency business from $6 billion to $12 billion. The new business improved its leadership position in energy management and building systems and services, serving customers in 125 countries from more than 1,000 locations. The contribution of the Building Efficiency business was recognized recently by Forbes magazine, which named Johnson Controls one of “the best-managed big companies in the United States.”
“Johnson Controls’ growth and profitability qualify it squarely for our list,” Forbes reported. “Its performance record is impressive: 60 consecutive years of revenue growth, 16 of profit growth and 31 of dividend growth ... In the fiscal year ended September 30, net income rose 14% to $1 billion on revenue of $32 billion, up 17%.
“The most explosive growth is coming from the building efficiency group, where revenues are expected to jump 25% in 2007.”
Flagship products include the Metasys® building management system that provides more control and easier access to information than any other system of its kind. It incorporates open systems technologies of both the building automation and the information technologies industries. The result is a system that integrates all building equipment, organizes the information in the most logical way and delivers it where and when needed.
On the equipment side, York® brand unitary products and engineered systems deliver superior energy efficiency, a broad choice of refrigerants and compressor technologies, plus specialized systems such as the FlexSys™ underfloor air distribution system that contribute to green building and sustainability goals. Johnson Controls also provides a wide range of energy, operations and facilities management services, with more than one billion square feet of space under management globally.
The new $370-million Kansas City Campus, which opened this month, demonstrates some of the capabilities of the Johnson Controls/York team. The project uses a 26,000-control-point Metasys building management system and a York FlexSys underfloor air distribution system that serves more than half of the facility’s 1.14 million square feet of office space.
To highlight this progress, journalists were invited to a media reception and briefing on January 29 in Dallas to hear from customers, distributors and executives about the many ways that, together, Johnson Controls and York are providing more services, including:
- More technology solutions
- Unmatched, end-to-end integrated products and services
- More distribution
- Increased ability to source products and services
- More scope
- Faster installation and service and an international footprint
- More energy and sustainability solutions
- More smart environments.
For additional information, visit www.johnsoncontrols.com.
Kohler joins Alliance for Sustainable Built Environments
Kohler, Wis. -- Kohler Co., a global leader in kitchen and bath design and technology, has joined the Alliance for Sustainable Built Environments.
Founded in 2003, the mission of the Alliance’s international corporate members is to educate the marketplace and top management on the benefits of reducing the overall impact facilities have on the natural environment and on building occupants. Members include Johnson Controls, Milliken & Company, Forbo Flooring, Philips Lighting, JohnsonDiversey, Owens Corning, USG Corporation and, now, Kohler.
The Alliance invited Kohler to join based on the company’s commitment to water conservation through its product offerings, its recognition of sustainability as a critical part of its business strategy, and its efforts to green its facilities. Participation in the Alliance strengthens Kohler’s leadership in delivering innovation, quality and performance water conservation solutions to customers and offers opportunities to leverage critical partnerships within the marketplace.
“Kohler uses renewable and recycled resources from the earth -- sand, clay, iron and water -- to create kitchen and bath products of lasting beauty, style and performance that endure for generations,” said David Kohler, group president of Kohler’s Kitchen and Bath Group. “As a company, we are committed globally to reducing our consumption of energy and resources in each of our four businesses groups while upholding our mission of contributing to a higher level of gracious living for those who are touched by our products and services.”
Craig Zurawski, executive administrator of the Alliance, said, “We are excited to have Kohler join the Alliance bringing its expertise in water conservation. Kohler’s commitment to create products that not only conserve an important natural resource like water, but deliver quality, style and value is well-known throughout the world in both commercial and residential applications. Kohler’s forward thinking exemplifies what this group of companies is trying to accomplish, and that’s to help the business community understand that sustainable development is not only the right thing to do, it’s at the core of profitable business strategies.”
Alliance programming and activities include education and promotion of a number of environmental metrics, including the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED®) programs, the EPA’s ENERGY STAR, WaterSense and Climate Leaders programs, and others.
In 2005, the Alliance became a partner of the International Facility Management Association to develop and deliver sustainability educational programs, and provide research and planning tools to more than 18,000 members who collectively manage more than 23 billion square feet of workspace.
For details, visit www.kohler.com or www.greenerfacilities.org.
Aalberts Industries continues strategic expansion
with acquisition of LASCO Fittings
Brownsville, Tenn. -- Aalberts Industries N.V., which operates in the fields of industrial services and flow control, has reached agreement with Tomkins Industries Inc. to acquire 100% of the shares of LASCO Fittings Inc., a leading U.S. manufacturer and distributor of plastic fittings and related accessories for the plumbing, irrigation and pool/spa markets. The acquisition was expected to be finalized before March 1.
Aalberts Industries is a publically traded company based in the Netherlands. With 9,500 employees worldwide, Aalberts has a heavy concentration of manufacturing and sales throughout Europe and is hoping this acquisition will boost its presence in the U.S. Aalberts’ first foray into the U.S. market came with its 2004 acquisition of Elkhart Products Corp. (EPC), an Indiana-based producer and distributor of copper fittings. Since then EPC has, through organic developments and by leveraging the know how of its sister companies in the group, significantly strengthened its market position as one of the leading copper fitting producers and distributors in the U.S.
With the acquisition of LASCO Fittings, the next major strategic step is taken into the U.S. market that will directly contribute to fulfilling customers’ plumbing requirements and provide Aalberts Industries with a strategic entrance into the (inter)national irrigation and pool/spa markets.
LASCO Fittings, which has more than 500 employees and generates annual sales of approximately $104 million, is one of the key players in the American market for plastic plumbing, irrigation and spa & pool solutions. Additionally, it has a comprehensive range of flow control products in its portfolio for both the retail and industrial sector. LASCO Fittings operates one manufacturing facility in Brownsville, Tenn., and has a nationwide distribution network of regional service centers.
Customers of LASCO Fittings include the major plumbing buying groups and wholesalers, big box retail chains and pool & irrigation distributors. In addition, the company has strong relationships with international golf course specification agencies and developers. LASCO Fittings serves its customer base through its own sales teams complemented by a national and international network of independent manufacturers’ representatives. Through its broad distribution network, LASCO Fittings provides differentiated, customer-oriented service including nationwide overnight delivery along with field and technical support.
“LASCO Fittings will remain an autonomous business unit of Aalberts, operating as LASCO Fittings Inc., an Aalberts Industries company,” explained LASCO Fittings president Jack McDonald. “Our manufacturing and administrative facilities will remain here, and will continue with business as usual. In addition, LASCO Fittings will retain its own sales management and manufacturers’ reps in the field. Aalberts was very clear that they bought LASCO Fittings for growth opportunities, not consolidation.
“Our wholesale customers should not experience any changes in the way they do business with LASCO Fittings. This acquisition will, in fact, provide greater opportunity for both LASCO Fittings and its customers as Aalberts wants to expand our product portfolio in our core markets of plumbing, irrigation, industrial and pool & spa. Their vision is to grow organically by expanding on our existing product offering through new development here in the U.S. and through acquisitions.”
LASCO Fittings’ strong presence in North America, coupled with a solid export into the international irrigation markets, ensures the strategic expansion of Aalberts Industries’ coverage of the U.S. flow control market. In addition, it provides Aalberts Industries with a broad range of complementary plastic products, a strong customer base and a nationwide sales & distribution network. LASCO Fittings’ extensive range of plastic fittings and accessories for the plumbing sector form an important expansion of EPC’s copper products portfolio, particularly for a number of strategic buying groups and wholesalers.
LASCO Fittings also provides Aalberts Industries with a strategic entrance into the regional, national and international irrigation markets. The company is also active in the plumbing sector through its drain, waste and vent applications. This product package fully complements that of Aalberts Industries and will enable it to penetrate this market.
LASCO Fittings’ plastic production knowledge and expertise are largely complementary to Aalberts Industries’ existing activities in Europe. Aalberts Industries has developed and introduced a range of plastic products through its German subsidiary, Simplex Armaturen + Fittings, and the recent acquisitions of KAN (Poland) and COMAP (France). The LASCO Fittings acquisition will enable Aalberts Industries to consolidate its knowledge and accelerate the time to market for new plastic products and solutions both in Europe and the U.S.
It is expected that LASCO Fittings’ results will be consolidated with effect from March 1, 2007, and will make a direct contribution to earnings per share.
Aalberts Industries notifies, subject to audit, that operating profit, net profit and earnings per share (all results before amortisation) in the second half of 2006 are expected to be approximately 10% higher than in the first half of 2006.
For additional information, visit www.lascofittings.com.
Billtrust, Mincron form strategic alliance
Princeton, N.J., and Houston -- Billtrust, a leading billing service provider for the distribution industry, and Mincron Software Systems, a premier software supplier of distribution and warehouse solutions, announced a strategic alliance to enhance Mincron’s solutions in the critical area of billing services. Mincron will offer its client companies Billtrust’s CompleteBilling Service, which includes outsourced paper and electronic billing, an online customer service tool, expert bill redesign and in-bill marketing.
Instead of printing invoices and statements in-house, Mincron customers can now electronically transmit bills to Billtrust for processing. With the ability to send bills via U.S. mail or electronically, depending on the customer’s preference, CompleteBilling provides Mincron’s clients with a seamless transition to electronic billing, allowing them to cut their billing costs by over 50%.
“Our customers are always interested in reducing costs and getting paid faster,” said Mincron president Jim Delonas. “Outsourcing invoice and statement processing and delivery to Billtrust achieves these goals while simplifying their business and freeing up valuable personnel resources. This allows them to focus on elements of their business that generate sales and profits.”
Billtrust president Flint A. Lane said, “Mincron is a key partner for Billtrust. With Mincron’s breadth of tightly integrated enterprise solutions and Billtrust’s billing technology and services expertise, we are uniquely positioned to help their distribution and warehouse customers increase profitability through better billing.”
Mincron Software Systems, headquartered in Houston, is a leading provider of innovative, high-value software and business service solutions to wholesale distributors, logistics companies, and other businesses requiring tightly integrated enterprise software solutions. For more information, visit www.mincron.com.
Billtrust, headquartered in Jamesburg, N.J., is a leader in outsourced billing solutions. The company’s flagship product and service suite, called CompleteBilling, consists of paper, fax and e-mail billing as well Invoice Gateway, a hosted web billing and payment service. In addition, the company provides expert bill design, in-bill marketing services, and an integrated online customer service tool called CustomerCare. These comprehensive tools automate the billing process, enabling businesses to save money, increase productivity, improve cash flow, and seamlessly migrate to electronic delivery. More than 200 companies nationwide rely on Billtrust for their billing needs. For more information, visit www.billtrust.com.
Nibco expands its PEX operations
Elkhart, Ind. -- Nibco has announced the opening of its new 80,000-square-foot facility in Franklin, Ohio. This facility will absorb the PEX pipe post-processing functions and East Coast distribution of PEX pipe that was previously done at its Lebanon, Ohio, facility.
“Due to growth in the PEX market and in order to meet our customer needs, Nibco had to expand its manufacturing capacities at its Lebanon, Ohio, location,” said president and CEO Steve Malm. “By relocating the post-processing and distribution to the new Franklin site, valuable space will be freed up in the Lebanon facility, allowing for increased production.”
The Lebanon facility will continue operations focusing on pipe extrusion and cross-linking. After the pipe is manufactured in Lebanon, it will be transported to the Franklin facility for post-processing and distribution. The new Franklin facility is located 15 miles from Lebanon.
In May 2006, Nibco announced that it had acquired the assets of Consolidated Plumbing Industries, a manufacturer of cross-linked polyethylene tubing. The acquisition was a strategic move in expanding Nibco’s presence in the PEX water distribution and radiant heating markets.
For more information, visit www.nibco.com.
Nu-Calgon, Everpure ink distribution agreement
St. Louis -- Everpure LLC and Nu-Calgon Wholesaler Inc. have entered into an agreement for Nu-Calgon to exclusively distribute a private labeled line of the finest water filtration products to treat ice machines, coffee brewers, fountain beverage systems and other water related systems nationwide.
The new filters will carry the Nu-Calgon Nu-Plus™ E Series name as well as the Everpure® brand name. All cartridges will be made by Everpure specifically for Nu-Calgon and will feature Everpure’s exclusive metal housing. All the new cartridges will be interchangeable with Everpure’s present filter heads and will not affect the system warranty or certifications.
Complete systems from single to quad configurations are available with optional sediment prefilters and scale inhibitor feeders. Replacement filter cartridges added to the line to reduce water-related problems in ice and beverage machines include: NU-i20002 with a capacity of 9,000 gallons and nu-i40002 with a 12,000-gallon capacity. Both filters contain 6R Micromet® to inhibit any scale build-up that may be caused by dissolved minerals in the water supply.
Two filters, the NU-MC2 with a 9,000 gallon capacity and nu-xc2 with a larger 12,000-gallon capacity to reduce objectionable taste and odor that adversely affect the taste of beverages compliment the line. These Nu-Plus e Series filter cartridges feature pre-coat filtration with Everpure’s Micro-Pure® II media featuring antibacterial protection and are NSF Certified. A special problem-solving carbon block filter, nu-7cb5s, with a 10,000-gallon capacity is also being added to the line.
The Nu-Plus E CU and the Nu-Plus E CU-S, are also being introduced to replace Cuno® 8000 series filter cartridges. Both of these filters have a capacity of 10,000 gallons with the cu-s filter providing additional protection against scale formation, rounding out the Nu-Calgon Nu-Plus E Series™ product filtration line.
The complete Nu-Plus E Series filtration line will be available through select authorized Nu-Calgon wholesalers across North America during the first quarter of 2007.
Nu-Calgon and Everpure have been serving the water filtration market for decades, providing quality products that customers have come to rely upon time and time again.
For more information, call 800/554-5499 or visit www.nucalgon.com.
Pricingnet offers new negotiating feature
Carmel, Ind. -- Pricingnet now allows buyers to negotiate prices directly with the seller online. The new feature is called Make an Offer and allows sellers to solicit bids for any product listed for sale on Pricingnet.
Potential buyers enter a price they are willing to pay, and the seller can either accept or reject the offer. As a seller, just list your items at a price of $0, the system automatically handles the rest. As a buyer, items with “Make Offer” in the price field allow you to submit a bid to the seller.
This feature, which is free for both buyer and seller, will help the Pricingnet marketplace by enabling more transactions based upon more realistic prices, resulting in real savings for buyers and more items sold for sellers.
For more information, e-mail info@pricingnet.com, phone 888/295-8245 or visit www.pricingnet.com.
Security Supply honors ‘$3-million man’
Selkirk, N.Y. -- Twenty-two years ago, John Grasso stood behind the counter of Security Supply’s Schenectady, N.Y., branch. While he spent five of those years as the assistant manager of the branch, he knew that the outside sales position was where he could excel. And that he did.
Recently, Grasso was honored for reaching a new company milestone in 2006. He has become the first salesperson in the history of Security Supply to surpass $3 million in sales. And considering Security Supply has been in business for 73 years, Grasso’s achievement is that much more significant.
Grasso never doubted this milestone was attainable as he was also the first salesperson to hold the $2 million sales record in 2003 and continued to exceed those numbers in the years following.
“My individual accomplishments are directly related to the support I receive from the team behind me,” he said. “And that support extends from everyone at the Schenectady branch, to the commercial department headquartered in Selkirk, along with the management team and their approach to serving our customers. My customer philosophy and sales approach is pretty fundamental -- go the extra mile for your customers and focus on their needs and the sales take care of themselves.”
Grasso is one of Security Supply’s 14 outside sales representatives representing 11 branches located throughout eastern upstate New York and western Massachusetts. For more information, visit www.secsupply.com.
Supply New England adds tile at Kitchen & Bath Gallery
Warwick, R.I. -- Supply New England’s Kitchen & Bath Gallery, located at 361 Jefferson Boulevard in Warwick, has expanded and has introduced decorative tile offerings for use in kitchens and baths.
With the addition of tile, Supply New England reports that its Kitchen & Bath Gallery is the only Rhode Island consumer showplace with major emphasis on full kitchen, bath and tile products. Clients will be able to experience a one-of-a-kind “library,” displaying the newest tile styles in various actual kitchen and bath display settings.
“Decorative tile is more popular than ever and a logical extension of our kitchen and bath cabinetry, countertops and bath fixture offerings,” said David Corcoran, Supply New England president. “Now our clients can design a complete kitchen or bath from floor to ceiling.”
The company has experienced tile professionals on hand at the Jefferson Boulevard Gallery. They have also produced a 5 Steps to Picture Perfect Tile brochure to assist their customers in getting started with selecting tile for their homes.
Tyco celebrates opening of new training, R&D center
Lansdale, Pa. -- Tyco Fire & Building Products opened its new Global Technology Center on December 19 in Cranston, R.I. Festivities included a ribbon-cutting, guided tours and speeches from Tyco International ceo Ed Breen, as well as other Tyco representatives and Rhode Island government dignitaries.
Tyco invested $5 million to renovate its Cranston research & development facility into a new, state-of-the-art Global Technology Center. The renovation consisted of a multi-phase remodel resulting a new, world-class training and product development facility.
“The new Global Technology Center will expand our resources as the leading solutions provider in the fire protection and mechanical industries and our commitment to saving lives,” said Carmine Schiavone, vice president-sales and marketing for Tyco Fire & Building Products.
Tyco chose to renovate the existing facility -- the birthplace of modern fire sprinkler technology and a key part of Tyco’s history -- and further demonstrate its commitment to the Providence area.
Among the improvements is a 4,300-square-foot expansion of the existing building to allow for greater product development capacity and efficiency for new water-based fire protection and mechanical components. Already one of the fastest-growing suppliers of mechanical products in the industry, Tyco will now be able to fully capitalize on its commitment to offer fully integrated fire-suppression systems and mechanical components for the hvac and plumbing markets.
The new and improved facility will also include valve and fire sprinkler testing areas for industrial, commercial and residential applications. The addition includes state-of-the-art residential and commercial test facilities that will allow the company to simulate Underwriters Laboratories and Factory Mutual test services.
Another focal point is the 10,500-square-foot Frederick Grinnell Education Center, which houses a 48-seat multi-media ampitheater, a product museum and display area, a visitor dining/lounge area and a hands-on, 24-seat valve training classroom with fire demonstration cells.
The center will be able to accommodate nearly 800 visitors per year with 38 training classes. Prior to the renovation, it could only host 15 classes each year for about 200 visitors.
For details, visit ww.tyco-fire.com.
SureSeal provides valves for Arizona’s first ethanol plant
Mineral Point, Mo. -- Sure Seal Inc., a leading manufacturer of industrial valves and a division of the OPW Fluid Transfer Group, has been awarded the contract to supply high-performance butterfly valves to the first ethanol plant to be built in Arizona. Pinal Energy llc owns the plant and, once complete, the facility will produce an estimated 55 million gallons of ethanol per year.
Recently enhanced for use in all biofuel markets, Sure Seal’s high-performance butterfly valves are compatible with the corrosive nature of ethanol. In the production process and transfer of ethanol, the polyester polyurethane body coatings of the valves resist degradation that can occur in some materials when in contact with ethanol. Because of the wide range of valve combinations available, the valves are able to meet the pressure and temperature requirements of the ethanol production process.
“Sure Seal is honored to be part of the first ethanol plant in the state of Arizona,” said Greg Sisk, Sure Seal general manager. “Our high-performance butterfly valves are unique since they are capable of handling ethanol. Pinal Energy will be happy to know that Sure Seal’s valves will stand the test of time.”
The Industrial Company (TIC) is constructing Pinal Energy’s ethanol plant, with process technology supplied by Delta-T Corp. The plant will be owned and operated by Pinal Energy llc, a unit of Arizona Grain Inc., and constructed adjacent to the company’s existing grain facility.
Sure Seal manufactures its valves with materials including carbon steel, stainless steel and alloys. Sizes range through 60 inch, with ANSI 150-, 300- and 600-pound specifications. Engineered specifically for the biofuels market, the valves come standard with 316 stainless steel trim, polyester polyurethane body coatings and three seating configurations (soft, firesafe and metal). As a standard practice, every valve manufactured by Sure Seal is tested to 110% of its pressure rating.
For more information, go to www.suresealinc.com.