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INVENSYS SELLS FLOW CONTROL BUSINESS TO FLOWSERVE FOR $535 MILLION
22 March 2002 - Invensys plc
| Invensys plc has agreed to sell its Invensys Flow Control business to Flowserve Corporation, a leading provider of industrial flow management services, for cash consideration of $535 million. The sale proceeds will be used by Invensys to reduce its level of indebtedness. Invensys Flow Control is a manufacturer of valves, actuators and associated flow control products mainly to the oil and gas, chemical and petrochemical, power generation and process industries. |
Invensys plc has agreed to sell its Invensys Flow Control business to Flowserve Corporation, a leading provider of industrial flow management services, for cash consideration of $535 million. The sale proceeds will be used by Invensys to reduce its level of indebtedness. Invensys Flow Control is a manufacturer of valves, actuators and associated flow control products mainly to the oil and gas, chemical and petrochemical, power generation and process industries. For the twelve months ending March 31, 2002, the business is expected to generate revenues and PBIT of around US$520 million and US$65 million respectively. Net assets which are the subject of the transaction are approximately US$330 million. Goodwill written off to reserves relating to acquisitions made over the last 25 years for the Flow Control business amounts to approximately $130 million. The sale of Flow Control is consistent with Invensys' previously stated objectives to divest non-core assets as part of its overall plan to improve capital strength and increase strategic focus. The transaction is subject to customary regulatory approvals, the consent of Flowserve's lenders, completion of transaction financing and consultative procedures. The transaction is expected to complete by the end of May 2002. Rick Haythornthwaite, CEO of Invensys said: 'We identified Flow Control as a non-core business before the current strategy review. The combination of Flow Control with the Flowserve businesses should provide considerable opportunities to enhance the growth prospects of both businesses. The sale is good value for the company and reinforces our commitment to reducing debt and strengthening the balance sheet.' About Flowserve Corporation
Flowserve Corp. is one of the world's leading providers of industrial flow management services. Operating in 30 countries, the company produces engineered pumps for the process industries, precision mechanical seals, automated and manual quarter-turn valves, control valves and valve actuators, and provides a range of related flow management services. The Company had fiscal 2001 revenues in excess of $1.9 billion.
http://www.invensys.com
About: Invensys plc
Invensys is a global automation, controls and process solutions Group. We empower you to increase productivity, reduce waste, remove cost from your supply chain, boost profitability and demonstrate measurable improvement in your company's overall performance.
As a global leader in resource productivity, Invensys offers products and services, expertise, and technologies that enable you to maximize return on investments, conserve resources and optimize performance across your value chain.Operating in more than 60 countries worldwide, Invensys meets the needs of the process and batch industries - from oil & gas, powerand utilities, chemicals, and rail systems to food & beverage, healthcare, and data communications - as well as the discrete and hybrid manufacturing sectors, and provides components, systems and services to the heating management, commercial refrigeration, residential safety and automotive industries, and electronic and electro-mechanical systems and components to appliance and related industries. Not only do we help improve your bottom line, by enabling you to manage your assets more efficiently, but we also help you to protect the environment. As the result of our efforts, we have been awarded the prestigious Energy Star Label by the United States Environmental Protection Agency (EPA). Taking an integrated strategic approach to increasing your productivity, we enable you to increase output from your existing plants and technology investments, provide you with solutions that create more efficiencies in your supply chain, and increase performance at every level. From the production line to executive offices, from customer relationship and procurement management to distribution logistics, we can help you improve productivity, optimize performance, and increase profitability. |
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