Flowserve Announces IFC Acquisition Progress

05.06.2002

DALLAS, Jun 5, 2002 (BUSINESS WIRE) -- Following Flowserve Corporation's (NYSE:FLS) acquisition of the Invensys Flow Control division (IFC), which was finalized on May 2, 2002, the company today announced initiatives to help realize the previously announced $10-to-15 million in estimated annual synergies expected by December 2003.

The company said it would close six facilities and reduce related employment by approximately 450 positions. The majority of these reductions are planned to occur before March 2003. The company expects to complete all consolidation actions by December 2003.

"The acquisition of IFC was primarily a complementary transaction that significantly broadened our offering of valve products and service, simultaneously propelling Flowserve into position as the world's second largest valve producer," said C. Scott Greer, chairman, president and chief executive officer of Flowserve Corporation. "To help us meet our announced plan to our shareholders to reduce costs and grow our business, we must leverage and optimize the resources of the combined companies. While it is never pleasant, we've had to make some difficult decisions regarding facilities and personnel."

Steps announced by the company today include:

The closure of the Jeffersonville, Indiana, site, affecting 201 people.

Production from this facility will be moved to Sulphur Springs, Texas.

The closure of the Marlborough, Massachusetts, site, affecting 49 people; Olive Branch, Mississippi, affecting 66 people; Liberty, North Carolina, affecting 66 people; and Scarborough, Ontario, affecting 25 people. Production from these facilities will be moved to Cookeville, Tennessee.

The closure of the Provo, Utah site, affecting 50 people. Production from this facility will be split between Springville, Utah and Lynchburg, Va.

"Because I recognize decisions like these create a very difficult time for the employees and their families, we will offer the affected people severance pay and transition assistance. However, these actions are a necessary part of the company's strategy to capture synergies and achieve significant cost savings by reducing overcapacity and eliminating overlap between the two companies," Greer said.

The announced moves could increase employment at the receiving sites. Greer said the total number of new jobs created depends upon two variables: the number of people who elect to accept an offer to relocate and the staffing needs of the receiving sites as the relocated manufacturing lines become operational.

About Flowserve Corp.

Flowserve Corp. is one of the world's leading providers of industrial flow management services. Operating in 34 countries, with pro forma 2001 sales of $2.4 billion and more than 14,000 employees, 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.

More information about Flowserve Corp. can be obtained by visiting the company's web site at

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