DALLAS, TX, & ROSELAND, NJ, Nov. 10, 2004 (BUSINESS WIRE) Flowserve Corp. has sold its Government Marine Business Unit (GMBU), located in Phillipsburg, N.J., to Curtiss-Wright Corp. for about $28 million in cash. Proceeds from the sale will be used to repay debt.
The transaction, which the company expects will generate a pretax gain of about $8 million, closed on Nov. 10, with a retroactive effective date of Nov. 1.
"The GMBU serves a niche in a non-core market and represents a small percentage of Flowserve's total business," said Flowserve Chairman, President and CEO C. Scott Greer. "Flowserve's strategy is to focus growth on our core end-user markets to capture the full life cycle of our products and enhance our end-user support."
With sales of about $26 million, GMBU will operate as a business unit of the Flow Control segment of Curtiss-Wright. It's a leading designer and manufacturer of highly engineered, critical function pumps for the U.S. Navy nuclear submarine and aircraft carrier programs and non-nuclear surface ships. GMBU has an outstanding reputation as the sole source supplier of main and auxiliary seawater, fresh water and cooling pumps, coolant purification pumps, injection, chilled water and other critical pumps. About 85% of this business supports nuclear programs and 15% supports non-nuclear naval surface programs. GMBU has a strong and growing aftermarket business for repairs, refurbishments and parts which constitutes about 45% of total sales.
"The acquisition of GMBU provides a significant addition to Curtiss- Wright's portfolio of highly engineered pumps and motors," said Martin R. Benante, Chairman and CEO of Curtiss-Wright. "GMBU's advanced marine technologies will expand product offerings in a core market segment for Curtiss-Wright -- the US Navy. It also provides an opportunity to expand our content on new non-nuclear surface platforms such as destroyers, amphibious ships, frigates, cruisers, mine warfare ships and other foreign military platforms."
Employing 76 full-time employees, GMBU has a 300,000 square foot manufacturing and testing complex that includes engineering and administration as well as one of the most comprehensive testing facilities in the industry. It's capabilities in design and testing of pumps and motors are very complementary to Curtiss-Wright's current facilities and provide an opportunity for capacity utilization enhancement.
About Flowserve
Flowserve Corp. is one of the world's leading providers of fluid motion and control products and services. Operating in 56 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services.
About Curtiss-Wright
Formed in 1929, Curtiss-Wright Corp. (www.curtisswright.com) is the legacy company of Glenn Curtiss and the Wright brothers' pioneering achievements which gave birth to the aviation industry. Today, Curtiss-Wright continues to focus on innovation as a diversified, global provider of highly engineered, technologically advanced products and services for military, commercial and industrial applications. The company designs, manufactures and overhauls products for motion control and flow control applications, and provides metal treatment services. Headquartered in Roseland, New Jersey, Curtiss-Wright employs about 5,400 people worldwide.
About Curtiss-Wright Flow Control
Based in Farmingdale, N.Y., Curtiss-Wright Flow Control (www.cwfc.com) is the flow control segment of Curtiss-Wright Corp. It was founded in 1951 and specializes in design and manufacture of highly engineered valves, pumps and related products for naval propulsion systems. Today, CWFC's sophisticated products are installed on every nuclear submarine and aircraft carrier commissioned by the U.S. Navy and an integral part of worldwide commercial nuclear power plants, oil and gas processing facilities, automotive and general industrial markets.
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