Pipe maker Uponor Oyj is selling its shares in joint venture company Phyn LLC, which offers water sensing and conservation technology, to partner Belkin International Inc. for an undisclosed price.
The two companies each own 50 percent of the JV, which was founded in 2016.
Phyn's original technology detects leaks in home plumbing systems and can shut off water. The product line then evolved to also tell homeowners if their pipes are about to freeze during extreme cold.
Phyn products were installed and serviced by a national network of plumbers dubbed the Uponor Pro Squad as part of its go-to-market strategy.
Uponor produces cross-linked polyethylene pipe for plumbing, radiant heating and cooling, fire sprinkler systems and hydronic distribution. Company officials partnered with Belkin to promote the technology and offer the firm plumbing expertise, professional trade insights and a global wholesale distribution channel.
However, the partnership is ending. Uponor booked an impairment on Phyn's valuation in its second-quarter results.
"These five years have proven that Phyn is on the right path with its water leakage detection technology, yet market adoption has not reached the targeted levels," Uponor Corp. President and CEO Jyri Luomakoski said in a news release. "Uponor has not been able to leverage its strong presence in the wholesale channel optimally. Having only limited synergies with our building solutions businesses, we have decided to sell our stake in Phyn to Belkin."
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