International flow control products and services company Flowserve has signed a $372.5 million (USD) agreement to acquire a Netherlands-based global provider of engineered vacuum and fluid pumps.
The acquired company, SIHI Group, provides engineered vacuum and fluid pumps, with associated aftermarket parts and services, primarily serving the chemical market, as well as the pharmaceutical, food & beverage and other process industries.
SIHI has operations across Europe, the Americas and Asia and anticipates FY2014 sales of approximately €280 million (US $350 million) with EBITDA of approximately €30 million (US $37.5 million) and gross margins approaching 30 percent.
Flowserve expects to double SIHI’s EBITDA by 2017 as well as support IPD’s target margins of 14-15%, following the impact of non-cash purchase price accounting, as well as transaction, integration and optimisation expenses.
“We are excited about the acquisition of SIHI, which is consistent with Flowserve’s ongoing growth strategy to add complementary assets to our portfolio and then accelerate their growth and leverage our operating platform,” said Mark Blinn, president and chief executive officer of Flowserve.
“The expected combination of SIHI’s solid installed base, with its leading position as a supplier of vacuum and fluid pumps, ability to enhance our chemical ISO pump strategy, engineering and manufacturing experience, strong gross margin profile, opportunity to leverage increased scale and both revenue and financial synergy potential make SIHI a natural fit for Flowserve that exceeds our disciplined financial requirements which drives solid long-term value for our shareholders.”
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