Flowserve Continues to Grow Presence in Asia-Pacific Region
Flowserve Corporation announced it has acquired the remaining 50 percent of shares needed to have full ownership interest in Niigata Worthington in Kawasaki, Kanagawa, Japan.
Flowserve previously owned 50 percent of Niigata Worthington in a long-term joint venture.
Niigata Worthington, a premier manufacturer of certain Flowserve pumps and other rotating equipment, reported sales of approximately $64 million in 2007. Flowserve recorded approximately $2 million for its 50 percent share of net income from the joint venture in 2007, using the equity method of accounting.
The transaction will be completed through cash and assumed liabilities totaling approximately $12 million. Other terms of the purchase were not disclosed.
Due to the size and timing of this remaining 50 percent share acquisition, Flowserve does not believe it will have a material impact on its results for the quarter ending March 31, 2008.
"This acquisition reflects our strong commitment to serving our customers - both end users and contractors - in this key Asia-Pacific region with products, service and support," said Tom Ferguson, president of Flowserve Pump Division. "Niigata Worthington has an excellent reputation as a world-class manufacturer of rotating equipment and services in this region."
Niigata Worthington provides Flowserve with a well-respected regional market leader in the industry, as well as an experienced employee base that can further continue to grow the company's aftermarket services business in the region. The acquisition also enhances Flowserve's ability to provide aftermarket support for the installed base of hydraulic decoking pumping systems, a key company product in Japan.
"With sales offices in several important locations and proven manufacturing capability, this acquisition further enhances our ability to serve the life cycle needs of our customers in the Asia-Pacific region and provides an excellent local platform for long-term growth within the region's oil and gas, chemical and power market sectors," added Ferguson.
With 100 percent ownership, Flowserve now expects increased opportunities to grow the sales and profitability of Niigata Worthington. The company plans to invest in the growth of the Niigata Worthington business and work to transfer its global best practices to further drive efficiencies throughout the organization.
Facility and Operations
In addition to its headquarters, Niigata Worthington has a 200,000 sq ft (18,600 sq m) manufacturing plant in Kashiwazaki, Niigata, and sales offices in Osaka, Fukuoka, Niigata and at the Kashiwazaki-kariha nuclear power plant.
Since its founding in 1953, Niigata Worthington has been contributing to the development of Japan's major industries, including oil and gas, petrochemical, power generation, steelmaking, and shipbuilding, as well as public work projects under the Worthington brand. This Japanese company employs approximately 200 people
About Flowserve Corp.
Flowserve Corp. is one of the world's leading providers of fluid motion and control products and services. Operating in more than 55 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services.
Source: Flowserve Corporation
