CIRCOR Acquires Critical Flow Solutions
October 13 2016 - 6:00AM
Business Wire
Provider of Severe-Service Valves with
Significant Aftermarket Sales.
Acquisition Expands Presence in Downstream
O&G.
Company to Host Conference Call Today at
10:00 am ET.
CIRCOR International, Inc. (NYSE: CIR), a leading provider of
valves and other highly engineered products for markets including
oil & gas, power generation and aerospace & defense, today
announced that it has signed a definitive agreement to acquire
Critical Flow Solutions (CFS) for $210 million. The Utah-based
company manufactures critical severe-service equipment for refining
operations. CFS recorded revenue of approximately $120 million with
EBITDA margins over 20% for the fiscal year ended June 30, 2016.
The acquisition is anticipated to close shortly and become
accretive in the first 12 months of combined operations. CIRCOR
plans to use its existing credit facility to finance the
acquisition.
“We are very excited to welcome the CFS team to CIRCOR,” said
Scott Buckhout, President and Chief Executive Officer of CIRCOR
International. “This acquisition diversifies CIRCOR’s revenue base
as we further penetrate the stable downstream refining market. CFS
brings an impressive portfolio of high technology valves and
automation equipment for severe-service applications. CFS generates
strong margins due to its unique technology, large installed base,
and high proportion of aftermarket sales.”
This transaction is expected to:
- Add differentiated technology and
leading positions in niche markets with high barriers to
entry;
- Broaden CIRCOR’s revenue base by
expanding its presence in the stable downstream refining end
market;
- Provide earnings accretion with strong
margins;
- Increase exposure to high margin
aftermarket sales to support a large installed base; and
- Offer opportunities for significant
cost synergies.
“CFS has highly differentiated products, strong patent
protection, and an excellent track record of developing and
commercializing new products,” added Buckhout. “We look forward to
working with the CFS team to continue providing excellent service
to our customers and capitalize on the growth opportunities in this
market.”
Critical Flow Solutions delivers a range of products and
services to the petroleum refining industry. The DeltaValve brand
is the market leader and offers solutions for the delayed coking
process in refineries. The TapcoEnpro brand provides market leading
solutions for the fluid catalytic cracking process in refineries.
CFS has a total of approximately 200 employees at its Salt Lake
City, Utah headquarters, Houston, Texas facilities and Barnsley, UK
service center. CIRCOR expects to operate the newly acquired
business as part of the Energy Group.
CIRCOR plans to discuss the acquisition of Critical Flow
Solutions on a conference call today at 10:00 a.m. ET. To listen to
the live conference call and view the accompanying presentation
slides, please visit “Webcasts & Presentations” in the
“Investors” portion of CIRCOR’s website. The live call also can be
accessed by dialing (877) 407-5790 or (201) 689-8328. The webcast
will be archived on the Company’s website for one year.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Reliance should not be placed on forward-looking
statements because they involve unknown risks, uncertainties and
other factors, which are, in some cases, beyond the control of
CIRCOR. Any statements in this press release that are not
statements of historical fact are forward-looking statements,
including, but not limited to, those relating to CIRCOR’s future
performance, including the performance of the Critical Flow
Solutions acquisition. Actual events, performance or results could
differ materially from the anticipated events, performance or
results expressed or implied by such forward-looking statements.
BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR COMPANY, WE
STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK FACTORS" IN
OUR MOST RECENT ANNUAL REPORT ON FORM 10-K AND SUBSEQUENT REPORTS
ON FORMS 10-Q, WHICH CAN BE ACCESSED UNDER THE "INVESTORS" LINK OF
OUR WEBSITE AT WWW.CIRCOR.COM. We undertake no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
About CIRCOR International, Inc.
CIRCOR International, Inc. designs, manufactures and markets
highly engineered products and sub-systems for markets including
oil & gas, power generation and aerospace & defense. CIRCOR
has a diversified product portfolio with recognized, market-leading
brands that fulfill its customers’ unique application needs. The
Company’s strategy is to grow organically and through complementary
acquisitions; simplify CIRCOR’s operations; achieve world class
operational excellence; and attract and retain top industry talent.
For more information, visit the Company’s investor relations
website at http://investors.circor.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20161013005632/en/
CIRCOR International, Inc.Rajeev Bhalla, 781-270-1210Executive
Vice President and Chief Financial Officer
CIRCOR (NYSE:CIR)
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