PW Eagle Inc. said it agreed to be acquired by J-M Manufacturing for $33.50 per share in a move that would combine two of the largest users of resin in North America. The deal is valued at about $400 million.

J-M Manufacturing, headquartered in Livingston, N.J., operates 14 plastic pipe manufacturing facilities and serves customers throughout North America. Based in Eugene, Ore., PW Eagle operates 12 plastic pipe manufacturing facilities in eight states and serves customers throughout the United States.

“With manufacturing facilities throughout North America, the combined company will have broader geographic reach, offer an expanded product line, and deliver value to customers and end users in new and innovative ways,’’ said Walter W. Wang, president and chief executive officer of J-M Manufacturing. “PW Eagle enjoys long-term relationships with its customers because it serves them effectively and efficiently. J-M Manufacturing and PW Eagle have many shared strengths, including a belief in the vital role our products play in safely delivering drinking water, electricity, gas, and other essentials. With this merger, we are even better positioned to bring value and passion to the pipe industry in serving the growing needs of our society.’’

J-M Manufacturing CEO Wang met with manufacturers’ reps for PW Eagle in Eugene, Ore., last week. PW Eagle employees, PW Eagle manufacturers’ reps and top executives from J-M Manufacturing attended the meeting.

One manufacturers’ rep who has been involved in several acquisitions and
mergers before said he was impressed that someone in top management showed so much concern for a sales force. “It was a great gesture for Walter Wang to address all the reps and include us so early in the process,” he said.

Jerry Dukes, president and CEO of PW Eagle, said it was too early to answer questions about the proposed acquisition because it has not been completed. He sees several benefits to combining the companies, including providing customers with a broader selection of products, superior delivery and making new opportunities for growth available to the company’s employees. The deal is expected to close during the second quarter of 2007.

PW Eagle first told investors in May it hired financial adviser Morgan Joseph & Co. to help look for a buyer. The board of directors of PW Eagle unanimously approved the merger agreement with J-M Manufacturing and is recommending that its shareholders approve the merger.

Ron Haedt of Electrorep, a manufacturers’ rep based in Sausalito, Calif., that represents PW Eagle, said the acquisition is significant. “There is no question in my mind that it is going to have a significant impact on the PVC market joining the two largest users of resin. I think it’s an exciting possibility.”

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