Accretive Acquisition Expands Energy Business in Asia and Middle
East
BURLINGTON, Mass.--(BUSINESS WIRE)--Apr. 16, 2015--
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, announced the
acquisition of Germany-based Schroedahl. Schroedahl is a privately-owned
manufacturer of safety and control valves primarily for the power
generation market and, in 2014, recorded revenue of approximately $30
million with EBITDA margins over 35%.
“We are excited to welcome the Schroedahl team to CIRCOR,” said Scott
Buckhout, President and Chief Executive Officer of CIRCOR International.
“This acquisition positions us in the high-growth power generation
market, particularly in Asia and the Middle East, and is consistent with
our disciplined capital deployment strategy. Schroedahl provides
sustainable, high margins as a result of its strong engineering
capabilities, differentiated technology and excellent reputation for
severe service valves. The company has a leading share of the
auto-recirculation valve market, which has high barriers to entry. We
also will be able to leverage our global salesforce to expand
Schroedahl’s product sales.”
“We are delighted to be combining forces with CIRCOR and to expand
Schroedahl’s access to customers and geographies beyond our current
reach,” said Marc Schroeder, Managing Director of Schroedahl. “This
combination will enhance our product offering and further strengthen our
competitive position.”
Founded in 1962 with customers in Asia, Europe and the Americas,
Schroedahl produces custom-engineered high-pressure auto-recirculation
(ARC) and control valves for pump protection applications. ARC valves
ensure the consistent minimum flow rate of pumps in order to guard
against overheating, collapse or destruction. Schroedahl has the leading
market position in the ARC valve market and has long-term relationships
with pump OEMs.
This transaction provides for:
-
Earnings accretion with strong, sustainable margins
-
Greater penetration of the high-growth power generation market
-
Increased presence in the high-growth Asia and Middle East regions
-
Differentiated technology and leading market position in a niche market
with
high barriers to entry
-
Opportunity to leverage CIRCOR’s global sales and operating footprint
CIRCOR plans to discuss the acquisition of Schroedahl on its
first-quarter 2015 financial results conference call on Tuesday, April
28, 2015 at 9:00 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 Schroedahl
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.
The use of EBITDA, or earnings before interest, taxes, depreciation and
amortization, is a non-GAAP financial measure. CIRCOR believes
that such information provides an additional measurement and consistent
historical comparison of the Company’s performance.
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.
Source: CIRCOR International, Inc.
CIRCOR International
Rajeev Bhalla, 781-270-1210
Executive
Vice President and Chief Financial Officer