Sulzer Agreed to Acquire PCC Pump Activities: Johnston, Crown, and Paco Pumps
On September 23, 2004, Sulzer agreed to acquire the US pump assets of Precision Castparts Corp. (PCC) as well as all shares of its Chinese pump company. The purchase price is USD 36 million.
The main locations of these pump activities are Houston, Texas, USA and Wuxi, China. In the fiscal year ending March 2004, the turnover of the pump activities was USD 98 million (~CHF 120 million) with around 475 employees in the USA and China. The acquisition complements the existing Sulzer Pumps product portfolio and strengthens Sulzer’s position in the power, process, and water segments. The acquisition includes ten service centers, located throughout North America.
Sulzer Pumps is Sulzer’s largest division, active in the segments oil and gas, hydrocarbon processing, power, pulp and paper, as well as water and waste water. The acquired pump brands Johnston, Crown, and Paco are well established and will further enhance the Sulzer Pumps portfolio in the power, process, and water segments. The combined brands include a strong product line of vertical pumps, as well as a comprehensive service business.
Through its worldwide presence and integration of the acquired business into its sourcing and service network, Sulzer sees considerable opportunities to create value. The integration is anticipated to be completed within 2005. The acquisition will not have an impact on the ongoing operational improvement focus at Sulzer Pumps.
Adding ten service centers at strategic US locations supports Sulzer’s service growth. The Wuxi facility will enhance the Sulzer sourcing strength in China.
The Sulzer Corporationis comprised of the four divisions Sulzer Metco (surface technology solutions and services), Sulzer Turbomachinery Services (service and repair of thermal turbomachinery), Sulzer Pumps (pumping solutions and services), Sulzer Chemtech (components and services for separation columns and static mixing), and the venture division Sulzer Hexis (fuel cell systems for residential applications). Sulzer employs about 9000 people worldwide. Sales for the first half-year 2004 totaled CHF 978 million. (sales in 2003: CHF 1826 million. Sulzer Pumps employs approximately 4400 professionals worldwide. Net sales for the first half year 2004 totaled CHF 462 million (sales in 2003: CHF 870 million).
Precision Castparts Corp. is a worldwide, diversified manufacturer of complex metal components and products. It serves the aerospace, power generation, fluid management, automotive, and general industrial and other markets. PCC is the market leader in manufacturing large, complex structural investment castings, airfoil castings, and forged components used in jet aircraft engines and industrial gas turbines.