Mueller Co. to sell subsidiary

Springfield-based stainless steel manufacturer Paul Mueller Co. (OTC: MUEL) signed a letter of intent to sell one of its subsidiaries.

The management of Mueller Field Operations Inc. is planning to buy the company in a deal tentatively valued at $6.6 million, according to a news release. The final dollar value is dependent on a definitive sales agreement and post-closing adjustments, with the purchase expected to close by the end of the month.

"Although we will miss our fellow co-workers, this is a great moment for the MFO team," said Jeremy Rogles, president and general manager of Mueller Field Operations, in the release. "We see the potential for MFO and Paul Mueller Co. to continue to thrive together while strengthening our individual objectives."

MFO is slated to continue operating at its current location – the Mueller Co. headquarters at the intersection of Chestnut and Kansas expressways – while searching for a new local home.

For the 12 months ended Sept. 30, MFO had $27.6 million in revenue, according to the release. The subsidiary was organized in 1998 to provide tank fabrication on-site and other field-installed equipment. The company plans to continue providing the same services while growing its brand.

Mueller Co. reported third quarter net income of nearly $4 million and revenue of $51.6 million, according to past reporting.

The company's over-the-counter stock traded as high as $32.75 per share on Dec. 11, compared with a 52-week range of $18 to $34.