DALLAS, Jan. 3, 2001 (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 www.flowserve.com.
