Flowserve Divests Tulsa Plant to Ruhrpumpen Inc.
DALLAS, Jan. 3 /PRNewswire/ -- Flowserve Corp. announced today the
divestiture of its Tulsa, Okla., plant to Ruhrpumpen Inc., a subsidiary of
Corporacion EG of Monterrey, Mexico, on Dec. 29, 2000. The company made the
required divestiture as part of an agreement with the U.S. Department of
Justice following Flowserve's acquisition of the Ingersoll-Dresser Pump Co.,
which the government approved in July 2000.
For the divestiture, Flowserve received about $5.3 million in cash, which
was used to reduce its indebtedness. The company also said it will incur a
pretax loss of about $3 million from the sale, which will be reflected as part
of its integration expense in the company's fourth quarter 2000 financial
results.
The divestiture also provides Ruhrpumpen an exclusive license to sell
eight different pump lines in the United States and Mexico, except for certain
specified customers, plus a non-exclusive license to sell these elsewhere.
Flowserve retained a non-exclusive license to otherwise manufacture and sell
these lines internationally, as well as the right to sell competing product
lines worldwide. In 2000, the licensed product lines generated, on a pro
forma basis, about $50 million of annual sales and about $3 million in
earnings before interest and taxes.
Oil refineries and power generation facilities typically use the pumps
involved in the divestiture.
Flowserve Corp. is one of the world's leading providers of industrial flow
management services. Operating in 30 countries, with pro forma 1999 sales of
$2.1 billion and more than 10,000 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 website at
Source: Flowserve Corporation
