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Colfax Corp IPO raises US$338mn
pumpindustry ANALYST
ISSN 1359-6128 June 2008
www.pumpindustryanalyst.com
Kirloskar Brothers targets US$1bn turnover by 2011
I
ndia’s Kirloskar Brothers Ltd (KBL) is aiming to become a top five global water management solutions company with a turnover of more than US$1 billion by 2011. With this in mind, KBL has reorganised its business into nine sectors: Irrigation and Rural Electrification; Water Resource Management; Oil and Gas; Distribution; Power; Industry; Building and Construction; Marine and Defense; and After Sales Service. Commenting on the changes, RK Srivastava, KBL director, said: “The objective of the change is to ensure that each sector is served at the highest level of operational efficiency and to enable KBL to provide best customer service. All these nine sectors shall operate as profit centres, independently looking after sales, marketing and execution and financial recovery etc.” There are also a number of new corporate functions. Corporate Global Sourcing will focus on sourcing, procurement of capital
equipment, pricing, planning and vendor evaluation. Corporate Business Development and Strategy will be responsible for mergers and acquisitions, new business initiatives, brand building and promotional activities. The Corporate International Division will be renamed Corporate Global Marketing and will be responsible for market intelligence. KBL is the largest pump manufacturer in India with a consolidated turnover of more than Rs21110 million (US$495 million) in the year to 31 March 2008, a 15% increase on the previous year. For further information, visit www.kbl.co.in
COMMENT A US$1 billion turnover is an ambitious target, with further acquisitions likely, as KBL strengthens its position as a complete water management solutions provider. ■
Colfax Corp IPO raises US$338mn
C
olfax Corp’s successful initial public offering (IPO) of its shares on 8 May generated proceeds of almost US$338 million (see Pump Industry Analyst, January 2008). The company offered 18.75 million shares priced at US$18 per share, above the expected price range of US$15–17. The proceeds of the IPO will be used to repay debt, pay dividends to preferred shareholders and for other corporate purposes. Colfax’s common stock is now trading on the New York Stock Exchange (NYSE) under the ticker symbol CFX. “The Colfax associates have worked hard to build a company that sets the standard
in critical fluid-handling solutions around the world,” said John Young, president and CEO of Colfax Corp. “I am proud of the accomplishments that have led us to this historic day in Colfax’s 12-year history. It is an honour to be a NYSE-traded company.” Young and other Colfax executives rang the NYSE’s Opening Bell on 9 May. Colfax, whose pump brands include Allweiler, Houttuin, Imo, Tushaco, Warren and Zenith, had net sales of US$506.3 million in 2007, up from US$393.6 million in 2006. 2007 net income was US$64.9 million, up from US$94 000 a year earlier. For further information, visit www.colfaxcorp.com
Contents Company Profile Alfa Laval
5
GEA
6
Company Watch Crane
7
Curtiss-Wright
7
Flowserve
8
Gardner Denver
8
Gorman-Rupp
9
Idex
9
Diary
15
Dividends
13
Exchange Rates
14
Financial Calendar
14
In Brief Market Prospects New Product Developments News Kirloskar Brothers targets US$1bn turnover by 2011 Colfax Corp IPO raises US$338mn
10,12 2–4 14
1 1
Pentair, GE Water explore residential water treatment JV 12 Allweiler offers no-obligation pump trial 12 DAB acquires Alma Pompe 12 Strong growth forecast for Asian pump market New divisional HQ for John Crane
12 13
KSB donates to cyclone, earthquake victims 13 GE to reduce fresh water use by 20% by 2012 12 Larox Flowsys buys Finnish pump specialist
16
Spirax-Sarco benefits from customer investments Weir makes strong start to the year
16 16
Potential buyers study Sterling Fluid Systems
16
Orders & Contracts
10
People & Appointments
11
Stock Watch
15
ISSN 1359-6128/08 © 2008 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 June 2008
www.pumpindustryanalyst.com
Kirloskar Brothers targets US$1bn turnover by 2011
I
ndia’s Kirloskar Brothers Ltd (KBL) is aiming to become a top five global water management solutions company with a turnover of more than US$1 billion by 2011. With this in mind, KBL has reorganised its business into nine sectors: Irrigation and Rural Electrification; Water Resource Management; Oil and Gas; Distribution; Power; Industry; Building and Construction; Marine and Defense; and After Sales Service. Commenting on the changes, RK Srivastava, KBL director, said: “The objective of the change is to ensure that each sector is served at the highest level of operational efficiency and to enable KBL to provide best customer service. All these nine sectors shall operate as profit centres, independently looking after sales, marketing and execution and financial recovery etc.” There are also a number of new corporate functions. Corporate Global Sourcing will focus on sourcing, procurement of capital
equipment, pricing, planning and vendor evaluation. Corporate Business Development and Strategy will be responsible for mergers and acquisitions, new business initiatives, brand building and promotional activities. The Corporate International Division will be renamed Corporate Global Marketing and will be responsible for market intelligence. KBL is the largest pump manufacturer in India with a consolidated turnover of more than Rs21110 million (US$495 million) in the year to 31 March 2008, a 15% increase on the previous year. For further information, visit www.kbl.co.in
COMMENT A US$1 billion turnover is an ambitious target, with further acquisitions likely, as KBL strengthens its position as a complete water management solutions provider. ■
Colfax Corp IPO raises US$338mn
C
olfax Corp’s successful initial public offering (IPO) of its shares on 8 May generated proceeds of almost US$338 million (see Pump Industry Analyst, January 2008). The company offered 18.75 million shares priced at US$18 per share, above the expected price range of US$15–17. The proceeds of the IPO will be used to repay debt, pay dividends to preferred shareholders and for other corporate purposes. Colfax’s common stock is now trading on the New York Stock Exchange (NYSE) under the ticker symbol CFX. “The Colfax associates have worked hard to build a company that sets the standard
in critical fluid-handling solutions around the world,” said John Young, president and CEO of Colfax Corp. “I am proud of the accomplishments that have led us to this historic day in Colfax’s 12-year history. It is an honour to be a NYSE-traded company.” Young and other Colfax executives rang the NYSE’s Opening Bell on 9 May. Colfax, whose pump brands include Allweiler, Houttuin, Imo, Tushaco, Warren and Zenith, had net sales of US$506.3 million in 2007, up from US$393.6 million in 2006. 2007 net income was US$64.9 million, up from US$94 000 a year earlier. For further information, visit www.colfaxcorp.com
Contents Company Profile Alfa Laval
5
GEA
6
Company Watch Crane
7
Curtiss-Wright
7
Flowserve
8
Gardner Denver
8
Gorman-Rupp
9
Idex
9
Diary
15
Dividends
13
Exchange Rates
14
Financial Calendar
14
In Brief Market Prospects New Product Developments News Kirloskar Brothers targets US$1bn turnover by 2011 Colfax Corp IPO raises US$338mn
10,12 2–4 14
1 1
Pentair, GE Water explore residential water treatment JV 12 Allweiler offers no-obligation pump trial 12 DAB acquires Alma Pompe 12 Strong growth forecast for Asian pump market New divisional HQ for John Crane
12 13
KSB donates to cyclone, earthquake victims 13 GE to reduce fresh water use by 20% by 2012 12 Larox Flowsys buys Finnish pump specialist
16
Spirax-Sarco benefits from customer investments Weir makes strong start to the year
16 16
Potential buyers study Sterling Fluid Systems
16
Orders & Contracts
10
People & Appointments
11
Stock Watch
15
ISSN 1359-6128/08 © 2008 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.