Northstar Aerospace Sells Corporacion EG and Ruhrpumpen
Northstar Aerospace announced the sale of the common share interest in the pump operations to the joint venture partner, which closed on March 31, 2003. This transaction will allow Northstar to concentrate on its aerospace business and will allow the management of Corporacion EG, Ruhrpumpen and its subsidiaries to continue to focus on their development of the worldwide pump business.
Details of the transaction and the resulting impact on Northstar's financial statements are set out in note 4 of the unaudited consolidated financial statements for the quarter ended December 31, 2002, issued on March 6, 2003.
Corporacion EG is a joint venture between Industrias, E.G. (Mexico) and Northstar Aerospace Inc. (Canada). Corporacion EG started its operations in 1979. The sales rised to more than USD 85 million with more than 1000 employees worldwide. The operations are divided in two core business areas: OEM and Fluid Handling.
Ruhrpumpen GmbH was spun off from the Thyssen Group in February 1997 and was sold to Derlan Industries Limited (Toronto, Canada; today Northstar Aerospace) and to Industrias EG S.A. de C.V. (Monterrey, Mexico).
Ruhrpumpen Inc. was formed when Corporacion EG purchased Flowserve's Tulsa, OK facility in December 2000. Flowserve 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. Pumps have been manufactured at Tulsa Operations since 1966. The plant has a long history of making high quality pumps for the petroleum and power industries under the Byron Jackson, UCP, Wilson-Snyder and Ruhrpumpen lines.
WDM Pumps, also a fully owned subsidiary of Corporacion EG, has re-located to Tulsa in order to improve the co-operation with the sister company Ruhrpumpen, Inc.
In April 2002 Derlan Industries Limited announced several corporate initiatives to reposition the company and to concentrate on the development of its key aerospace activities. Management has completed a detailed review of the joint venture pump operations and has concluded that this investment should be sold. On April 12, 2002 the Board of Directors approved a formal plan of disposition for the pump operations. Post the disposition of the pump operations; the company's operations will be solely focused on the aerospace sector. Furthermore the company name was been changed from Derlan Industries Limited into Northstar Aerospace Inc. in order to reflect and communicate the Company's realignment in the market.
Source: Ruhrpumpen GmbH