- Email: [email protected]
Atlas Copco sells majority stake in rental business
IN BRIEF/DIVIDENDS/NEWS
Pump Industry Analyst
October 2006
IN BRIEF
DIVIDENDS
• Idex Corp has completed its US$183 million acquisition of Banjo Corp, a special purpose, severe duty pumps, valves, fittings and systems manufacturer serving both OEM and aftermarket applications in agricultural and industrial liquid handling (see Pump Industry Analyst, September 2006). Based in Crawfordsville, Indiana, Banjo has annual revenues of approximately US$44 million. • Flowserve Corp has received two industry awards from market research firm Frost & Sullivan recognising the US company’s market leadership in the pump sector. The awards cite “Flowserve’s excellence in providing superior value to its customers and its global penetration in the oil and gas industry.” Flowserve was named the 2006 North American Growth Excellence in Customer Value Leadership recipient in the pumps solutions market space. This award recognised Flowserve for its superior customer-centric business solutions and market-leading customer satisfaction. Flowserve was also given the 2006 Frost & Sullivan Global Vertical Market Penetration Leadership Award for its marketoriented and strategic approach to offering highly reliable and efficient pump systems to the oil and gas industry. • Tsurumi Manufacturing Co Ltd’s US subsidiary Tsurumi (America) Inc will move offices early next year. With increasing sales, Tsurumi (America) needs a bigger warehouse and offices. At 11 290 m2, the new site is more than twice the size of the existing one.
• The Curtiss-Wright Corp board of directors has declared a dividend of US$0.06 per share for Common Stock, payable on 27 October 2006 to stockholders of record on 13 October 2006. • The Smiths Group plc board is recommending that the final dividend for 2006 be raised to 21.5p, bringing the total dividend for the year to 31.35p, an increase of 8.1%, marking 36 years of successive increases. Smiths Group is the parent company of sealing giant John Crane. • Idex Corp’s board of directors has approved a regular quarterly cash dividend of US$0.15 per common share. The next dividend will be paid on 31 October 2006, to shareholders of record as of 16 October 2006. This dividend represents the company’s 48th consecutive regular quarterly cash dividend payment. • Robbins & Myers Inc’s board of directors has approved the regular quarterly dividend payment of US$0.055 per share for the fourth quarter of fiscal year 2006. Shareholders of record on 17 October 2006 will receive payment on 8 November 2006. • Ampco-Pittsburgh Corp’s regular quarterly dividend of US$0.10 per share on the company’s common stock, will be paid on 31 October 2006 to shareholders of record on 13 October 2006. • Graco Inc’s regular quarterly dividend of US$0.145 per common share will be paid on 1 November 2006, to shareholders of record at the close of business on 16 October 2006. The company has approximately 67.2 million shares outstanding.
12
CURTISS-WRIGHT, CAMERON FORM MARKETING JV Curtiss-Wright Corp has formed a joint venture with Cameron International Corp to market and supply subsea multiphase pumping systems to the international offshore oil industry. The systems will include advanced technology, developed and patented by CurtissWright’s Flow Control segment, Electro-Mechanical Division (EMD). The joint venture will operate as Cameron/Curtiss-Wright EMD LLC. Subsea pumping systems enable and optimise production of the growing number of deepwater reservoirs being developed in the Gulf of Mexico, West Africa, Brazil and other parts of the world. In addition to providing the power needed to lift oil from the reservoir to the platform, Curtiss-Wright’s pumping system also creates the potential to accelerate the oil production rate by as much as 50%. The joint venture combines Curtiss-Wright’s motor and pumping system expertise with Cameron’s subsea systems integration experience.
ATLAS COPCO SELLS MAJORITY STAKE IN RENTAL BUSINESS Atlas Copco AB is to sell the majority of its construction equipment rental business RSC Equipment Rental - to private equity firms Ripplewood Holdings LLC and Oak Hill Capital Management LLC, in a deal valued at SKr28 billion in cash and securities. Atlas Copco will retain a 14.5% minority stake in the business. “We are very satisfied with the deal. It results in substantial cash proceeds, a capital
gain and a minority stake in the best equipment rental company in North America,” said Gunnar Brock, Atlas Copco’s president and CEO. Commenting on the transaction, Tim Collins, CEO of Ripplewood Holdings, and Denis Nayden, managing partner of Oak Hill Capital, said: “RSC Equipment Rental has an extraordinary management team, committed employees and is well positioned in the industry. We are excited about this investment and believe the company’s strength gives us an opportunity to continue to grow the business profitably and create long-term value.” In the 12 months ended 30 June 2006, the divested business had revenues of SKr11 535 million, EBITDA of SKr4 847 million and 5 100 employees in 450 rental stores throughout North America. Atlas Copco’s says that it is divesting because the operating environment and the business characteristics of the construction equipment rental market are very different from Atlas Copco’s industrial equipment operations and that the possibilities to capture and develop synergies are limited.
ITT WATER TECHNOLOGY RECALLS FAULTY PUMPS ITT Water Technology Inc has voluntarily recalled about 18 300 Goulds Pumps, Bell & Gossett and Red Jacket Water Products branded pumps for fire suppression systems. A mechanical part on these pumps was not fully tightened, which can lead to the pump failing during use. ITT Water Technology has received one report of a pump failing to start during a system test. No injuries have
Pump Industry Analyst
October 2006
IN BRIEF
DIVIDENDS
• Idex Corp has completed its US$183 million acquisition of Banjo Corp, a special purpose, severe duty pumps, valves, fittings and systems manufacturer serving both OEM and aftermarket applications in agricultural and industrial liquid handling (see Pump Industry Analyst, September 2006). Based in Crawfordsville, Indiana, Banjo has annual revenues of approximately US$44 million. • Flowserve Corp has received two industry awards from market research firm Frost & Sullivan recognising the US company’s market leadership in the pump sector. The awards cite “Flowserve’s excellence in providing superior value to its customers and its global penetration in the oil and gas industry.” Flowserve was named the 2006 North American Growth Excellence in Customer Value Leadership recipient in the pumps solutions market space. This award recognised Flowserve for its superior customer-centric business solutions and market-leading customer satisfaction. Flowserve was also given the 2006 Frost & Sullivan Global Vertical Market Penetration Leadership Award for its marketoriented and strategic approach to offering highly reliable and efficient pump systems to the oil and gas industry. • Tsurumi Manufacturing Co Ltd’s US subsidiary Tsurumi (America) Inc will move offices early next year. With increasing sales, Tsurumi (America) needs a bigger warehouse and offices. At 11 290 m2, the new site is more than twice the size of the existing one.
• The Curtiss-Wright Corp board of directors has declared a dividend of US$0.06 per share for Common Stock, payable on 27 October 2006 to stockholders of record on 13 October 2006. • The Smiths Group plc board is recommending that the final dividend for 2006 be raised to 21.5p, bringing the total dividend for the year to 31.35p, an increase of 8.1%, marking 36 years of successive increases. Smiths Group is the parent company of sealing giant John Crane. • Idex Corp’s board of directors has approved a regular quarterly cash dividend of US$0.15 per common share. The next dividend will be paid on 31 October 2006, to shareholders of record as of 16 October 2006. This dividend represents the company’s 48th consecutive regular quarterly cash dividend payment. • Robbins & Myers Inc’s board of directors has approved the regular quarterly dividend payment of US$0.055 per share for the fourth quarter of fiscal year 2006. Shareholders of record on 17 October 2006 will receive payment on 8 November 2006. • Ampco-Pittsburgh Corp’s regular quarterly dividend of US$0.10 per share on the company’s common stock, will be paid on 31 October 2006 to shareholders of record on 13 October 2006. • Graco Inc’s regular quarterly dividend of US$0.145 per common share will be paid on 1 November 2006, to shareholders of record at the close of business on 16 October 2006. The company has approximately 67.2 million shares outstanding.
12
CURTISS-WRIGHT, CAMERON FORM MARKETING JV Curtiss-Wright Corp has formed a joint venture with Cameron International Corp to market and supply subsea multiphase pumping systems to the international offshore oil industry. The systems will include advanced technology, developed and patented by CurtissWright’s Flow Control segment, Electro-Mechanical Division (EMD). The joint venture will operate as Cameron/Curtiss-Wright EMD LLC. Subsea pumping systems enable and optimise production of the growing number of deepwater reservoirs being developed in the Gulf of Mexico, West Africa, Brazil and other parts of the world. In addition to providing the power needed to lift oil from the reservoir to the platform, Curtiss-Wright’s pumping system also creates the potential to accelerate the oil production rate by as much as 50%. The joint venture combines Curtiss-Wright’s motor and pumping system expertise with Cameron’s subsea systems integration experience.
ATLAS COPCO SELLS MAJORITY STAKE IN RENTAL BUSINESS Atlas Copco AB is to sell the majority of its construction equipment rental business RSC Equipment Rental - to private equity firms Ripplewood Holdings LLC and Oak Hill Capital Management LLC, in a deal valued at SKr28 billion in cash and securities. Atlas Copco will retain a 14.5% minority stake in the business. “We are very satisfied with the deal. It results in substantial cash proceeds, a capital
gain and a minority stake in the best equipment rental company in North America,” said Gunnar Brock, Atlas Copco’s president and CEO. Commenting on the transaction, Tim Collins, CEO of Ripplewood Holdings, and Denis Nayden, managing partner of Oak Hill Capital, said: “RSC Equipment Rental has an extraordinary management team, committed employees and is well positioned in the industry. We are excited about this investment and believe the company’s strength gives us an opportunity to continue to grow the business profitably and create long-term value.” In the 12 months ended 30 June 2006, the divested business had revenues of SKr11 535 million, EBITDA of SKr4 847 million and 5 100 employees in 450 rental stores throughout North America. Atlas Copco’s says that it is divesting because the operating environment and the business characteristics of the construction equipment rental market are very different from Atlas Copco’s industrial equipment operations and that the possibilities to capture and develop synergies are limited.
ITT WATER TECHNOLOGY RECALLS FAULTY PUMPS ITT Water Technology Inc has voluntarily recalled about 18 300 Goulds Pumps, Bell & Gossett and Red Jacket Water Products branded pumps for fire suppression systems. A mechanical part on these pumps was not fully tightened, which can lead to the pump failing during use. ITT Water Technology has received one report of a pump failing to start during a system test. No injuries have