Rochester Midland Purchases Ashland Water Technologies
Rochester Midland Corporation (RMC) announced that it has entered into a definitive agreement with Ashland Incorporated, conducting business as Ashland Water Technologies (AWT), to purchase the business assets of a portion of its middle market commercial business. The AWT Commercial business segment will become part of the Water Energy Group of RMC. The business to be transferred includes roughly 5,000 customer locations, with total annualized revenues of approximately $15 million. Financial terms of the transaction were not disclosed.
Under the agreement, RMC will have the right to make and sell Ashland water treatment products into this North American market segment. Ashland and Rochester Midland Corporation will work together to provide state-of the art products and services.
“RMC has a strong commitment to the water and wastewater treatment markets. The AWT Commercial program and their sales force add significant value to RMC and our growing customer base,” said Glenn Paynter, President, Rochester Midland Corporation. CEO, Harlan Calkins said “We look forward to a long-term business relationship with Ashland Water Technologies in multiple areas of mutual interest in our markets and geographies.”
“The transfer of our North American Commercial business to RMC is consistent with our decision to focus on more strategic markets, while maintaining our commitment to utility water treatment,” said Paul Raymond, president, Ashland Water Technologies. “The market for this type of technology is highly fragmented, and we believe RMC is better positioned to grow this business and realize a greater return for both companies. We look forward to partnering with them to ensure a successful business model.”
The transaction is expected to close within the next 30 days, subject to fulfillment of certain conditions. The parties have agreed to work together to ensure a seamless transition with no disruption in customer service.
Approximately 70 employees currently work in the business being transferred. RMC has committed to offering jobs to all of these employees.
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