June 20, 2013 -- Global water and wastewater markets are expected to improve through a recent acquisition between Torishima Pump Mfg. Co., Ltd ("Torishima") and Fluid Equipment Development Company, LLC ("FEDCO"). Torishima agreed to acquire a 50-percent interest in Fluid Equipment, a U.S-based manufacturer of pumps and hydraulic energy recovery devices, from its shareholder, and completed the transaction on June 6, 2013 (June 5, 2013, U.S. time).
The management structure will remain the same, with Mr. Eli Oklejas as CEO. "Torishima shares our values of quality, efficiency, teamwork, and innovation. Our partnership is expected to yield exponential growth,” states Mr. Oklejas. This investment will benefit FEDCO customers with new technologies, world-wide sales and service capabilities and further commitment of its manufacturing and testing facilities.
FEDCO will continue operations in Monroe, Mich., and anticipates completion of a 6,650 m2 office and manufacturing expansion by the second quarter of 2014.
In June, 2012, Torishima and FEDCO agreed to establish a Joint Venture, Advanced Pumps International LLC ("Advanced Pump") for the development, manufacture, sales and service of pumps to the Oil & Gas industry. The investment of a 50-percent interest in FEDCO by Torishima will cement the relationship between the two parties, easing the way for greater global reach and aiding in the development of "Energy-Efficient" & "Energy Recovery" rotating equipment.
The merging of Torishima and FEDCO will create the following benefits:
1. A full range of products under one umbrella, allowing for greater pooling of resources in exploring new markets such as Water, Oil & Gas and General industry.
2. Torishima currently does not have a manufacturing or service bases in the U.S. This investment will allow Torishima to utilize FEDCO's facility in the U.S. for conventional pump operations.
3. FEDCO's engineering system will be further developed to reduce delivery times and improve its efficiencies.
Although Torishima holds a 50-percent interest, FEDCO will continue to be managed by Mr. Eli Oklejas, current President, and is therefore not consolidated into the Torishima Group Financial Statement. The investment price will not be disclosed. Consideration of this investment has been paid by cash on hold in Torishima to FEDCO shareholders.
About Fluid Equipment Development Company
FEDCO designs and manufactures fluid machinery, such as turbocharger energy recovery devices and centrifugal pumps especially suited for reverse osmosis (RO) desalination systems. Further, the company has developed turbochargers and power recovery turbines for a wide range of low pressure desalination and industrial RO systems.
Fluid Equipment Development Company (FEDCO) is a designer and manufacturer of high pressure centrifugal pumps and energy recovery devices for seawater and brackish water reverse osmosis desalination. FEDCO world headquarters is located in Monroe, Michigan USA with Sales and Service offices in Dubai, UAE and Singapore. (www.fedco-usa.com)
About Torishima Pump Manufacturing Company
Torishima Pump Manufacturing Company is headquarter in Osaka, Japan and was founded in 1919. It currently designs and manufactures centrifugal pumps and pumping systems for a variety of applications with installations throughout the world. It employs over 1400 people worldwide and has locations in over 16 countries. (www.torishima.co.jp/en)