Water Industry News
Johnson Inc. Acquires Kinetico Incorporated
STAMFORD, CT, – April 20,
2006 – Axel Johnson Inc., the North American operating arm of the
Sweden-based Axel Johnson Group, announced today that it will acquire
Kinetico Incorporated, one of the world’s leading manufacturers of
residential, commercial, industrial and municipal water treatment systems.
Axel Johnson is a private company with interests in the energy and
environmental sectors. Kinetico will become part of the company’s
AxWater Group, where it joins Parkson Corporation, a leading supplier of
water and wastewater treatment systems for municipal and industrial
"We believe that acquiring and developing a group of businesses
focused on improving access to clean, safe water represents both an
attractive long-term investment and the opportunity to make a meaningful
social contribution," says Michael D. Milligan, president and chief
executive officer of Axel Johnson Inc. "We have been looking for some
time for a company that could add dimension and scale to our AxWater
Group. In Kinetico, we have found an excellent match — in culture and
values as well as long-term vision for the business. We believe the
potential for Kinetico is tremendous.
"Kinetico will join Axel Johnson as a stand-alone company; our plans
are to maintain and build on Kinetico’s operations from its existing
campus in Northeast Ohio. We are prepared to support current management as
they work to achieve our shared vision for the company, and to offer the
entire Kinetico team the opportunity to help shape and build a broader
Axel Johnson endeavor across the water industry," Milligan adds.
"Kinetico is honored to be invited to join the Axel Johnson
Group," says William Prior, founder of Kinetico Incorporated.
"In the current environment of quick-turn mergers and acquisitions,
we are thrilled that the owner of Axel Johnson, Antonia Ax:son Johnson, is
one who seeks long-term ownership of businesses. Beyond attractive
earnings potential, Antonia is concerned with owning and building
organizations that reflect her and her family’s values. One of those
values is to ensure the availability of clean, safe drinking water to
people around the world; the acquisition of Kinetico certainly fits.
"The people of Kinetico are excited that this acquisition will
provide broad support for our dreams and global plans to grow our
distribution from our existing platform. At the same time, it will respect
our hard-won culture, build on our strong independent dealer network and
retain the Kinetico organization as it exists," he states.
Axel Johnson Inc.
Axel Johnson Inc., located in Stamford, CT, is a private company with
interests in the energy and environmental sectors. As a legally and
financially independent member of the Axel Johnson Group, wholly owned by
Antonia Ax:son Johnson of Stockholm, it shares an extensive business
network with group activities throughout the European Union and in Asia.
In the United States, Axel Johnson Inc. has been active in the water
industry since 1971 through Parkson Corporation.
In 2000, the company formed the AxWater Group to pursue the Johnson
family’s long-standing commitment to bringing clean, safe water to
individuals and communities around the world. The family is driven by a
belief that access to clean, safe water should be a universal birthright
of all people. The AxWater Group is therefore chartered to align itself
with and support businesses, individuals and organizations that promote
research and development of innovative water-related products and services
in water resource management. There is particular interest in areas that
may lead to breakthrough improvements in water resource management, re-use
In the energy sector, the company operates through Sprague Energy, the
leading independent supplier of energy products and related services in
the Northeast. Further information regarding Axel Johnson Inc. is
available at www.axeljohnson.com
Kinetico Incorporated, headquartered in Newbury, Ohio, is a leading
manufacturer of water treatment systems. An extensive network of Kinetico
dealers serving residential and light commercial customers has helped more
than a million people in nearly 100 countries experience the benefits of
better water. Industrial customers utilize Kinetico’s patented
technology for water recycling, hazardous waste minimization, metals
recovery and high purity water production. Kinetico also applies
proprietary filtration technology to municipal water treatment systems.
Since 1970, Kinetico has prided itself on creating unique water treatment
systems that serve customers in an expanding variety of residential,
commercial, industrial and municipal applications. The company also has
offices and facilities in the United Kingdom, Canada, France and Denmark.
Further information is available at www.kinetico.com.