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Sulzer to acquire majority stake in Saudi Pump Factory
pumpindustry ANALYST
ISSN 1359-6128 February 2014
www.pumpindustryanalyst.com
Sulzer to acquire majority stake in Saudi Pump Factory
S
ulzer has signed an agreement to acquire a 75% interest in Saudi Pump Factory in a CHF33 million deal. Saudi Pump Factory, located in Riyadh, Saudi Arabia, produces centrifugal pumps to API and ASME standard. The pump company had sales of approximately CHF25 million in 2012 and employs 170 people. Sulzer plans to set up a local production joint venture Sulzer Saudi Pump Co (SSPC). SSPC will be the first complete manufacturing facility in Saudi Arabia for a global pump manufacturer of API pumps. Saudi Pump Factory’s 25 000 m² facility in Riyadh will be part of Sulzer’s global manufacturing network, focusing on the oil and gas, power and water markets. A pump test facility is also available. The Saudi Pump acquisition is expected to close in the second quarter of 2014.
Meanwhile, Sulzer has signed an agreement with Oerlikon for the divestment of its Sulzer Metco division. Sulzer expects cash proceeds after taxes of approximately CHF850 million from the deal which is expected to close in the third quarter of 2014. After the divestment, almost 80% of Sulzer’s sales will be in the three key markets oil and gas, power, and water. Sulzer intends to use the funds generated from the sale for targeted acquisitions and further investments. For further information, visit www.sulzer.com and www.saudi-pump.com
COMMENT This acquisition is in line with Sulzer’s strategic decision to focus on the oil and gas, power and water markets (see Pump Industry Analyst, July 2013). n
over Corp’s Pump Solutions Group (PSG) has put a new organizational structure in place based on three regions: the Americas; Europe, Middle East and Africa (EMEA); and Asia. Karl Buscher, previously senior vice president, PSG Commercial, will serve as the new president of PSG Americas. Ueli Thuerig, president of PSG Europe, will be the new president of PSG EMEA. David Wang, vice president of sales and business development, Asia-Pacific, will become president of PSG Asia. PSG says that the changes are designed to meet future demands of scale, accountability and growth, both organic and acquired. Despite the restructuring, PSG’s “Go to Market” strategy will continue to be based on satisfying the needs of its customers within its core vertical market segments, including energy, chemical, hygienic and polymers. Certain
Company Profile Kirloskar Brothers
5
Company Watch Colfax 6 Franklin Electric
6
Gorman-Rupp 7 GUD 7 IDEX 8 ITT 8
Diary
15
Exchange Rates
14
Feature Mergers & Acquisitions Review 2013 11–12
Financial Calendar
14
Market Prospects
2–4
New Product Developments 14 News
New regional structure for Pump Solutions Group
D
Contents
internal functions, such as human resources, marketing and mergers and acquisitions, will continue to support all regional areas. “To continue to grow and expand, and meet our goal of becoming a US$1 billion-plus flow control solutions platform, PSG’s organizational structure needs to evolve and transform itself to effectively manage future scale and growth,” said PSG president Dean Douglas. “As we move forward, I am confident this structure will enhance our speed of business, response time and the decision-making process within each region to better serve our business partners and customers. The decision to create a regionally focused corporate structure will serve to make us more competitive globally while also helping foster customer intimacy and positioning our brands locally within the specific regions.”
Sulzer to acquire majority stake in Saudi Pump Factory
1
New regional structure for Pump Solutions Group
1
Proserv buys KRG Industries from Torishima Pump
13
Name change for ProMinent
13
Pump Solutions Group launches PSG TV
13
Gardner Denver expands aftermarket business 13 FEDCO Singapore moves to PUB’s WaterHub 13 GE creates new Downstream Technology Solutions business
16
Kirloskar Brothers extends refurbishment network in India 16
Orders & Contracts
9
People & Appointments
10
Stock Watch
15
For further information, visit www.psgdover.com
ISSN 1359-6128/14 © 2014 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.
ISSN 1359-6128 February 2014
www.pumpindustryanalyst.com
Sulzer to acquire majority stake in Saudi Pump Factory
S
ulzer has signed an agreement to acquire a 75% interest in Saudi Pump Factory in a CHF33 million deal. Saudi Pump Factory, located in Riyadh, Saudi Arabia, produces centrifugal pumps to API and ASME standard. The pump company had sales of approximately CHF25 million in 2012 and employs 170 people. Sulzer plans to set up a local production joint venture Sulzer Saudi Pump Co (SSPC). SSPC will be the first complete manufacturing facility in Saudi Arabia for a global pump manufacturer of API pumps. Saudi Pump Factory’s 25 000 m² facility in Riyadh will be part of Sulzer’s global manufacturing network, focusing on the oil and gas, power and water markets. A pump test facility is also available. The Saudi Pump acquisition is expected to close in the second quarter of 2014.
Meanwhile, Sulzer has signed an agreement with Oerlikon for the divestment of its Sulzer Metco division. Sulzer expects cash proceeds after taxes of approximately CHF850 million from the deal which is expected to close in the third quarter of 2014. After the divestment, almost 80% of Sulzer’s sales will be in the three key markets oil and gas, power, and water. Sulzer intends to use the funds generated from the sale for targeted acquisitions and further investments. For further information, visit www.sulzer.com and www.saudi-pump.com
COMMENT This acquisition is in line with Sulzer’s strategic decision to focus on the oil and gas, power and water markets (see Pump Industry Analyst, July 2013). n
over Corp’s Pump Solutions Group (PSG) has put a new organizational structure in place based on three regions: the Americas; Europe, Middle East and Africa (EMEA); and Asia. Karl Buscher, previously senior vice president, PSG Commercial, will serve as the new president of PSG Americas. Ueli Thuerig, president of PSG Europe, will be the new president of PSG EMEA. David Wang, vice president of sales and business development, Asia-Pacific, will become president of PSG Asia. PSG says that the changes are designed to meet future demands of scale, accountability and growth, both organic and acquired. Despite the restructuring, PSG’s “Go to Market” strategy will continue to be based on satisfying the needs of its customers within its core vertical market segments, including energy, chemical, hygienic and polymers. Certain
Company Profile Kirloskar Brothers
5
Company Watch Colfax 6 Franklin Electric
6
Gorman-Rupp 7 GUD 7 IDEX 8 ITT 8
Diary
15
Exchange Rates
14
Feature Mergers & Acquisitions Review 2013 11–12
Financial Calendar
14
Market Prospects
2–4
New Product Developments 14 News
New regional structure for Pump Solutions Group
D
Contents
internal functions, such as human resources, marketing and mergers and acquisitions, will continue to support all regional areas. “To continue to grow and expand, and meet our goal of becoming a US$1 billion-plus flow control solutions platform, PSG’s organizational structure needs to evolve and transform itself to effectively manage future scale and growth,” said PSG president Dean Douglas. “As we move forward, I am confident this structure will enhance our speed of business, response time and the decision-making process within each region to better serve our business partners and customers. The decision to create a regionally focused corporate structure will serve to make us more competitive globally while also helping foster customer intimacy and positioning our brands locally within the specific regions.”
Sulzer to acquire majority stake in Saudi Pump Factory
1
New regional structure for Pump Solutions Group
1
Proserv buys KRG Industries from Torishima Pump
13
Name change for ProMinent
13
Pump Solutions Group launches PSG TV
13
Gardner Denver expands aftermarket business 13 FEDCO Singapore moves to PUB’s WaterHub 13 GE creates new Downstream Technology Solutions business
16
Kirloskar Brothers extends refurbishment network in India 16
Orders & Contracts
9
People & Appointments
10
Stock Watch
15
For further information, visit www.psgdover.com
ISSN 1359-6128/14 © 2014 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.