The Gorman-Rupp Company announces over $10 million of cash investments in expansions of its European operations in Ireland and The Netherlands and a related planned acquisition in Belgium.
Source: Gorman Rupp
The Company also announces that its G-R Europe subsidiary has reached an agreement in principal to purchase Hydro+ SA (“Hydro+”) and Hydro+ Rental SPRL (“Hydro Rental”) (collectively “Hydro”) based near Namur, Belgium, subject to satisfactory completion of its due diligence review and of a definitive purchase agreement.
Hydro+ has been the Company’s Belgian pump and pump systems distributor since 1998, and in 2011 formed Hydro Rental to expand pump and pump system rentals in the same region. Hydro’s principal products are centrifugal pumps supplied by the Company, and Hydro+ has begun converting some of these pumps into packaged pump station systems tailored for its European market. Combined annual revenues of the Hydro companies are approximately four million U.S. dollars. The planned business combination is expected to be completed during September 2015 upon execution of a definitive purchase agreement.
Yves Givron, Managing Director of Hydro+, will remain in that capacity and stated that he and “Nicolas Lefevre, Managing Director of Hydro Rental, and all of the Hydro team members are looking forward to the opportunities resulting from blending Hydro’s European pumps expertise with Gorman-Rupp’s 80-plus years of international design and manufacture of centrifugal pumps and pumping systems and its broad international distribution network.”
Mr. Kreinbihl said that he and Mr. Peters “are eager to combine the respective expertise of the Hydro organization with the G-R Europe organization to expand the reach of both entities throughout new areas complementary to the Company’s existing distribution network across the European Union base.”
Jeffrey Gorman stated he “was excited by the opportunities expected to arise from combining the Hydro companies with the Company’s brand name and operations, including Gorman-Rupp, Patterson Pump, National Pump, AMT, and Gorman-Rupp Industries. Hydro comfortably fits our operational philosophy with its established expertise and customer satisfaction experience.”
Mr. Gorman further noted that “although the Company faces a number of global economic headwinds at this time, we believe these European expansion investments will help position The Gorman-Rupp Company for future growth once these temporary challenges are dissipated or resolved. We continue to be pleased that our 80-plus years of proven financial strength provides the Company with exceptional flexibility to make these types of growth-oriented investments when the appropriate opportunities arise.”
Patterson Pump Ireland Limited based in Mullingar, Ireland has completed its construction of and move into its new production, test and administrative facilities. Patterson Ireland’s former leased facilities had been expanded several times to 20,000 square feet over the last 10 years to fill the site’s available space.
Needing to expand more to accommodate growing customer sales and opportunities lead to collaboration with Mullingar-area development authority interests to plan and construct a new 40,000 square foot facility in the local area rather than moving. This state-of-the-art facility will provide for better integration of Patterson Ireland’s operations with its U.S.A.-based parent, Patterson Pump Company.
Albert Huber, President of the Company’s Patterson Pumps Group noted that “seventeen years ago after extensive evaluations of locations to expand internationally, we decided to locate in Mullingar due to the available and knowledgeable workforce and the active support of the community combined with the Ireland Development Authority. The subsequent success of Patterson Pump Ireland has been directly due to the hard work and dedication of its work team and we are proud that their results have created the need for and justified this important expansion to continue our international growth.”
Jeffrey Gorman, President and CEO of The Gorman-Rupp Company, commented that “it has been very gratifying to watch Patterson Pump’s Ireland-based company grow over its relatively short life. Our Patterson Ireland team has met the challenge of expanding our core fire protection sales growth outside of the U.S.A. with great success.”
The Company’s Gorman-Rupp Europe B.V. (“G-R Europe”) subsidiary has completed its consolidation of its operating facilities into a new larger facility. Formerly located in two smaller locations in Northern and Southern areas, GR Europe expanded into a larger single facility in Culemborg, southeast of Amsterdam. This consolidation provides GR Europe with improved logistical capabilities to serve its customers including more efficient access to Rotterdam’s large international commercial port facilities for receipt of pumps principally supplied by the Company from its Gorman-Rupp Pumps Group facilities headquartered in Mansfield, Ohio.
Mark Kreinbihl, Gorman-Rupp Pumps Group President, stated that he and John Peters, Managing Director of G-R Europe, “are pleased to re-position but retain Gorman-Rupp’s European base operations in The Netherlands to improve its operating and distribution efficiencies and customer service capabilities throughout its service areas.”