FORM 8-K
CURRENT REPORT
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
January 15, 1996
ZURN INDUSTRIES, INC.
IRS Employer
State of Commission Identification
Incorporation File Number Number
Pennsylvania 1-5502 25-1040754
Address and
Telephone Number
One Zurn Place
Erie, Pennsylvania 16505
814-452-2111
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ITEM 5 - OTHER EVENTS
The Company's news release dated January 15, 1996 announcing an agreement for
collaboration on future power generation projects with CMS Generation Co.
which also resolves long-standing litigation with Imperial Resource Recovery
Associates, L.P. is incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
ZURN INDUSTRIES, INC.
January 15, 1996 /s/ Dennis Haines
Dennis Haines
General Counsel and Secretary
EXHIBIT INDEX
20 Other Documents or Statements to Security Holders
News Release dated January 15, 1996
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EXHIBIT 20
FOR IMMEDIATE RELEASE
January 15, 1996
ZURN AND CMS ANNOUNCE AGREEMENT TO
PURSUE JOINT PROJECTS AND SETTLE LITIGATION
Erie, PA...Zurn Industries, Inc. and CMS Generation Co. today announced the
signing of an agreement for collaboration on future power generation projects,
as well as a settlement of certain litigation. The agreement strengthens and
expands the relationship built over several years between Zurn and CMS and
also resolves long-standing litigation related to an agricultural waste-
burning power plant built by Zurn for Imperial Resource Recovery Associates,
L.P. (IRRA) in Southern California.
The mutual business interests of Zurn and CMS through their affiliates have
involved investments in, and construction of, wood-waste, agricultural-waste
and tire-burning power plants in the United States since the late 1980's. The
new agreement between the two companies builds on the existing relationships
and successful projects by providing to each the right to invest in small- to
medium-sized alternative energy and combined-cycle power plants under
development by the other. The agreement also provides opportunities for Zurn
to design, build and operate facilities for CMS. Both companies have been
very active in Asia and South America and it is contemplated that these areas
will be the primary geographic focus of the new projects.
The litigation concerning the IRRA facility commenced in 1990. Following a
lengthy trial, an Imperial County, California jury returned a verdict against
Zurn which has been under appeal and for which a loss provision was recorded
by Zurn in fiscal 1994. The opportunity to resolve the matter as well as to
solidify future business evolved following CMS's recent acquisition of IRRA's
managing partner as part of a larger acquisition. In conjunction with the
joint business activities with CMS, Zurn reached agreement with IRRA, CMS,
Western Power Group and other participants to settle all litigation
surrounding the Imperial project. Although specific terms of the settlement
involving cash payments as well as future business considerations were not
disclosed, Zurn does not anticipate any additional charge to earnings.
... more ...
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Zurn Industries, Inc.
Page 2
Announcing the signing, Zurn Chairman and CEO Robert R. Womack said, "We
concluded that it was in the best interests of our shareholders to put this
lingering problem behind us and build for the future through a close working
relationship with CMS and the joint business activities afforded by this
agreement. We appreciate their confidence in our technical capabilities and
look forward to using our resources in support of key CMS projects in a number
of international markets."
Rodney E. Boulanger, CMS Generation President and CEO stated, "We at CMS are
pleased to build on our relationship with Zurn and we look forward to future
collaboration on power generation projects in the US, South America and Asia."
Zurn Industries, Inc. (New York Stock Exchange: ZRN) is a leading designer,
constructor and manufacturer of systems and equipment for power generation,
water control and mechanical power transmission, and Lynx golf equipment.
CMS Generation Co., a wholly-owned subsidiary of CMS Energy Corporation (New
York Stock Exchange: CMS), is one of the nation's top five independent power
producers with interests in 4900 megawatts from more than 25 operating power
plants in the United States, Argentina and the Philippines.
* * * * * *
Contacts:
Steve Adams Kelly M. Farr
ZURN INDUSTRIES, INC. CMS ENERGY CORPORATION
Erie, PA 814/452-2111 Dearborn, MI 313/436-9253
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