Mueller Water Products Exits Metering Business to ZENNER USA
Mueller Water Products, Inc. announced it has entered into an agreement to transition its metering business, operating under Mueller Systems, to ZENNER USA. This strategic move, following a review by the Board of Directors and management, aims to simplify Mueller's portfolio and allow the company to focus capital and resources on areas with stronger competitive positions and growth opportunities. Mueller expects this transition to result in an annualized adjusted EBITDA margin expansion of 100 to 140 basis points, primarily starting in fiscal year 2027. The company anticipates incurring approximately $26 million in one-time expenses in fiscal 2027 related to the transition, including warranty liability, severance, and other costs. ZENNER USA will provide customers with compatible software and hardware to ensure continuity of service.
Key Highlights
- Mueller Water Products to transition its metering business (Mueller Systems) to ZENNER USA.
- Agreement follows a comprehensive review of the metering business's strategic fit and performance.
- Mueller expects the transition to support adjusted EBITDA margin expansion of 100 to 140 basis points annualized.
- Company expects to incur approximately $26 million of one-time expenses in fiscal 2027 for the transition.
- Transitioning the metering business will simplify Mueller's portfolio and allow focus on core areas.
- ZENNER USA will provide replacement software and hardware for customers.
Price Impact
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