DETROIT LAKES, Minn., May 1, 2008 (PRIME NEWSWIRE) -- BTD Manufacturing, Inc., Detroit Lakes, Minn., announced today that it has acquired Miller Welding & Iron Works of Washington, Ill. BTD Manufacturing is an operating company of Otter Tail Corporation (Nasdaq:OTTR). The transaction, the terms of which were not disclosed, involved an exchange of cash for assets.
Miller Welding employs 120 people and generated annual revenues of approximately $26 million in 2007. Chuck Hoge, BTD CEO and the manufacturing platform vice president at Otter Tail Corporation, said the acquisition will open up opportunities to expand in existing and new markets. "This is welcome news for the respective customers of BTD and Miller Welding. The complementing production capabilities greatly expand the scope and capacity of what both companies can now offer," Hoge said. "And, while Miller Welding currently derives only a small portion of its revenues from the wind energy sector, it has the capabilities to expand significantly. We expect considerable growth and synergies with BTD and other Otter Tail companies, such as DMI Industries, our wind energy tower manufacturer."
"Miller Welding has a reputation for uncompromising quality and customer service," said Paul Gintner, BTD president. "It is a thriving company that sets and surpasses industry standards, and we are excited to spearhead its next stage of growth as part of BTD Manufacturing. With the additional services and experienced workforce of Miller Welding, we will continue to broaden our model of being 'the one-stop shop' for metal contract manufacturing."
Founded by Richard Miller in 1965, Miller Welding is a custom job shop fabricator and finisher. The company manufactures parts, metal fabrications and machined parts for off-road equipment, mining machinery, oil fields and offshore oil rigs, wind industry components, broadcast antennas and farm equipment. Based near Peoria, the company serves several major equipment manufacturers in the region and nationwide, including Caterpillar, Komatsu and Gardner Denver.
"When we decided to sell, we wanted to be involved with a company that would have the vision and the resources to help take Miller Welding to the next level," said Richard Miller, Miller Welding president. "We also desired, above all else, that the potential buyer would take good care of our great employees, some of whom have been with us for many years. We believe that BTD Manufacturing is the right company to do both."
With the transition to BTD ownership, Richard Miller will retire as president and continue on as a consultant. Sam Miller, currently the vice president, will be appointed president of Miller Welding. "We gain significant resources and growth potential through BTD and its parent company, Otter Tail Corporation," said Sam Miller. "The BTD management team is fantastic. They share our deep commitment to taking care of customers and employees. We are very excited about the opportunities ahead-with existing and new customers-as we take this step into a new chapter of Miller Welding."
As a complete one-stop shop, BTD offers design, engineering, prototyping and short-run functions, metal stamping, robotic and hand welding, spot welding, finishing machining, riveting, assembly, plating, heat treating and special packaging. With this acquisition, BTD now employs more than 580 people across its three Minnesota locations and in Illinois. For more information, visit the company's website at www.btdmfg.com.
Otter Tail Corporation has interests in diversified operations that include an electric utility, manufacturing, health services, food ingredient processing and infrastructure businesses which include plastics, construction and transportation. Otter Tail Corporation stock trades on the NASDAQ Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are located in Fergus Falls, Minn., and Fargo, N.D.
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Forward-looking Statements
Except for historical information, all other information provided in this release consists of "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These "forward-looking statements" are subject to risks and uncertainties which could cause actual results to differ materially from those projected, anticipated, or implied. The most significant of these risks and uncertainties are discussed or identified in Otter Tail Corporation's public filings made with the Securities and Exchange Commission. Otter Tail Corporation undertakes no obligation to publicly update or revise any forward-looking statements.