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.
BURLINGTON, Mass.--(BUSINESS WIRE)--Oct. 13, 2016--
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161013005632/en/
Source: CIRCOR International, Inc.
CIRCOR International, Inc.
Rajeev Bhalla, 781-270-1210
Executive
Vice President and Chief Financial Officer
