MDU Resources Acquires Total Corrosion Solutions
Bismarck, ND
MDU Resources Group, Inc. (NYSE:MDU) announced today that it has acquired the assets of Total Corrosion Solutions Inc. (TCS), a full-service cathodic protection company based in Billings, Mont.
TCS will become part of Bitter Creek Pipelines, the gathering pipeline and energy services subsidiary of MDU Resources. Financial details of the acquisition were not disclosed. MDU Resources anticipates the acquisition will be accretive to 2009 earnings per share.
“Adding TCS to Bitter Creek’s operations strengthens and broadens our portfolio of field energy services in the Rocky Mountain region, by enhancing our ability to provide innovatively engineered solutions for detecting, preventing and controlling corrosion on many different types of buried or submerged metal structures,” said Paul Hopfauf, executive vice president and chief operating officer of Bitter Creek Pipelines.
TCS operates throughout the Pacific Northwest and Rocky Mountain region and provides services to industrial customers that operate pipelines, well-casing systems, underground and above-ground storage tanks, municipal water supply systems, along with facilities at chemical plants, power plants, refineries, and compressor plants. TCS operates with approximately 40 employees.
“We welcome TCS’s management and employees to the team,” said Terry Hildestad, president and chief executive officer of MDU Resources. “TCS is a well-managed, successful operation with an excellent reputation for quality work, and it will be an excellent addition to our energy services group.”
The information in this release includes forward-looking statements, including statements by the president and chief executive officer of MDU Resources and the executive vice president and chief operating officer of Bitter Creek Pipelines, as well as the statement with respect to the anticipated effect of the transaction upon earnings per share, within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, actual results may differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the ability to effectively integrate the operations. For a discussion of other important factors that could cause actual results to differ, refer to Item 1A – Risk Factors in MDU Resources’ most recent Form 10-K and Form 10-Q.
MDU Resources Group, Inc., a Fortune 500 company and a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure, operating in three core lines of business: utility resources, energy and construction materials. MDU Resources includes electric and natural gas utilities, construction services, natural gas and oil production, natural gas pipelines and energy services, and construction materials and contracting. For more information about MDU Resources, see the company's Web site at www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.
Contacts:
Financial:
Vernon A. Raile
Executive Vice President, Treasurer and Chief Financial Officer
(701) 530-1003
Phyllis A. Rittenbach
Director of Investor Relations
(701) 530-1057
Media:
Tim Rasmussen
Operating Company Public Relations Manager
(701) 530-1069
E-mail: media@mduresources.com
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