Flowserve Acquires Italian Valve Manufacturer Valbart Srl
Flowserve Corp. announced it has acquired Valbart Srl, a privately owned Italian manufacturer of trunnion-mounted ball valves (TMBV) used primarily in the oil and gas industry.
"We are very pleased with our acquisition of Valbart and have confidence that our customers will benefit from the addition of Valbart s products to our portfolio," said Mark Blinn, Flowserve president and chief executive officer. "Valbart s premium technology, key position in the upstream and midstream oil and gas markets and demonstrated growth potential make it a compelling strategic fit for our organization."
Valbart was acquired in a cash transaction valued at approximately $200 million (at current exchange rates, or approximately EUR 156 million), which value includes approximately $32 million (approximately EUR 25 million) of existing Valbart net debt that was repaid at closing. Flowserve funded the transaction proceeds with cash on hand. The other terms of the acquisition have not been disclosed.
The Valbart acquisition is expected to have a slightlydilutive impact on Flowserve s 2010 earnings per share due to non-cash purchase price accounting effects from inventory revaluation, partially offset by expected favorable operations impact. The acquisition is estimated to be accretive to earnings per share in 2011.
Valbart, formed in 2003 and headquartered in Mezzago, Italy, specializes in the design, development and manufacture of a comprehensive range of API 6A and API 6D TMBVs in split-body, all-welded and top-entry configurations, which are predominantly used in upstream and midstream oil and gas applications.
For its fiscal year ended May 31, 2010, Valbart reported revenues of approximately $104 million (approximately EUR 81 million) and operating income of approximately $22 million (approximately EUR 17 million) on an unaudited basis.
"Valbart has quickly become a leader in the global TMBV market, with highly-efficient operations and an outstanding management team," said Tom Pajonas, president, Flowserve Flow Control Division. "Valbart s products fill a strategic gap in our product portfolio and significantly strengthen our ability to provide a more complete valve package to oil and gas projects. We believe that we can quickly and significantly grow Valbart through our established global sales and service network."
"We are excited to become part of the Flowserve family," said Roberto Bartolena, president, Valbart Srl. "Flowserve provides Valbart with the global reach we need to continue to grow the business and the resources to develop new products."
Flowserve previously entered into a joint venture agreement with Valbart in December 2009 focused on combining Valbart s ball valve technology with Flowserve s high performance noise and cavitation-reducing trim designs. The joint venture has since created a trunnion-mounted control ball valve that is designed to deliver high performance.
Source: Flowserve Corporation
