From Earlier: Covanta Holding Corporation Announces Public Offering of $400M of Senior Notes

Mueller Water Products, Inc. (NYSE: MWA) has signed a definitive purchase agreement to divest United States Pipe and Foundry Company, LLC and Fast Fabricators, LLC to an affiliate of Wynnchurch Capital, Ltd., a Chicago-based private equity firm with offices in Dallas, Detroit and Toronto, the Company announced today. Partnering with Wynnchurch in the transaction is the Comvest Group, a leading private investment firm focused on providing equity and debt capital to lower middle-market companies. Under the terms of the agreement, USP Holdings Inc., an affiliate of Wynnchurch, will acquire 100 percent of the equity interests in U.S. Pipe for $89.8 million in cash, subject to post-closing adjustments, and the agreement to reimburse Mueller Water Products for certain liabilities, currently estimated at $10.2 million. Mueller Water Products expects to use the proceeds from the divestiture to pay down debt and for general corporate purposes. This divestiture improves Mueller Water Products' leverage (net debt/adjusted EBITDA from continuing operations) on a pro forma basis from 6.7x to 4.6x for the trailing 12 months ended December 31, 2011. The divestiture, which is subject to regulatory approval and customary closing conditions, is expected to close in Mueller Water Products' third quarter ending June 30, 2012.