Flowserve Corporation (NYSE: FLS), a provider of flow control products and services for the global infrastructure markets, announced it has sold its Naval OY business unit including its all-welded ball valve product line to Finnish valve manufacturer, Vexve OY.
The sale includes Naval s manufacturing facility located in Laitila, Finland and a service and support center located in St. Petersburg, Russia. Financial terms of the transaction were not disclosed.
"In our continuing effort to optimize our product portfolios and build long-term shareholder value, we made the decision to divest the Naval product line," said Tom Pajonas, Flowserve Chief Operating Officer. "While Naval s products and employees are of the highest quality, the niche market it serves is highly cyclical and does not provide the leverage we desire for our other product lines. This divestiture is consistent with our organic and inorganic investment strategy, and as such, serves both Flowserve and Vexve well."
Flowserve obtained Naval in 2002 as part of the acquisition of Invensys Flow Control. Products in the Naval portfolio include all-welded ball valves primarily used in district heating applications in Western Europe and Russia.