Flowserve Acquires Innovative Mag-Drive, LLC
Flowserve Corp. announced it has acquired Innovative Mag-Drive, LLC, or Innomag(TM), a privately owned American manufacturer of advanced sealless magnetic drive centrifugal pumps used primarily in the chemical and general industries.
The acquisition of Innomag will provide Flowserve with additional sealless, zero-emission pump technology that is increasingly utilized in the global petrochemical, organic chemical and pharmaceutical industries, which are core markets for Flowserve.
"Innomag has become an industry leader and benchmark for innovation in sealless, non-metallic, mag-drive pumps. Their products will be a valuable addition to our chemical and general industry product portfolio within our Industrial Product Division," said Tom Pajonas, Flowserve senior vice president and chief operating officer. "The Innomag brand has an outstanding reputation within the industry and the increasing acceptance of Innomag s products, as well as magdrive pump technologies in general, will create an attractive market opportunity for Flowserve. We look forward to leveraging our global market reach and expansive service network to further grow the Innomag business."
For the fiscal year ended December 31, 2012, Innomag had revenues of approximately $16.7 million and EBITDA of approximately $6.7 million. For 2013, Innomag estimates having revenues of around $19 million and EBITDA of around $7 million.
Flowserve funded the transaction with cash on hand. The Innomag acquisition is expected to have a dilutive impact of approximately $0.01 per share in 2013 due to transaction costs and non-cash purchase price accounting effects, partially offset by favorable operations impact.
"We are excited about our acquisition of Innomag, and it reflects our disciplined, strategic approach to inorganic growth and increasing long-term shareholder value," said Mark Blinn, Flowserve president and chief executive officer. "The close strategic fit of Innomag s products, technologies and served markets, the growth potential of the business, and the lower integration risk all fit well within our bolt on acquisition strategy."
Source: Flowserve Corporation