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EEC wins precipitator contracts
December 1998
FLANDERS EXPANDS STOCK BUYBACK Flanders Corp's board of directors has approved a new repurchase programme of up to an additional 1 million shares of the c o m p a n y ' s common stock. The repurchase is in addition to the stock buyback programme Flanders announced in April 1998 for up to 1 million shares of its c o m m o n stock. From time to time, at market prices and as market and business conditions warrant, the company may repurchase such shares for cash in open market, n e g o t i a t e d or block transactions. No time limit was set for completion of the programme and there is no a s s u r a n c e that such a programme will be completed. Flanders designs, manufactures and markets a full range of air filtration products r a n g i n g f r o m high p e r f o r mance laminar flow high efficiency particulate air filters and carbon filters for semiconductor manufacturing facilities to residential furnace filters.
DONALDSON EXTENDS STOCK REPURCHASE PROGRAMME Donaldson Company Inc's board of directors has authorised the repurchase of up to 5 million common shares. The board has also increased the common stock cash dividend by 20 per cent, by declaring a cash dividend of US$0.06 per share, payable on 15 December 1998, to shareh o l d e r s of r e c o r d on 4 December 1998. At the current dividend rate of US$0.20 per share per annum, cash dividends to shareholders have increased at a compound annual rate of 14 per cent over the last nine years. The current declaration is the 173rd consecutive quarterly cash divi-
Filtration Industry Analyst
dend paid by the company. As of 31 October 1998, there were a p p r o x i m a t e l y 47 500 000 shares outstanding. The repurchase authorisation of 5 m i l l i o n c o m m o n shares, w h i c h is e f f e c t i v e through the end of January 2001, increases and extends the existing repurchase authority that was due to expire at the end of January 2000. Of the 4 million shares authorised to be repurchased under this expiring a u t h o r i t y , 2.2 m i l l i o n shares were bought over the past year. The c o m p a n y ' s shares are traded on the New York Stock Exchange under the symbol DCI.
DECTRON GROWS AIR FILTRATION BUSINESS Montreal-based Dectron Internationale Inc, an engin e e r i n g leader in the HVAC/air filtration industry, is to acquire the capital stock of Cascade Technologies, PM W r i g h t , and C i r c u l a i r e Group. Based in Montreal, Cascade specialises in air, gas, dust and fume filtration, indoor air q u a l i t y (IAQ) and heat r e c o v e r y . The t r a n s a c t i o n should be completed by yearend and no terms were disclosed. Commenting on the acqui s i t i o n , Ness L a k d a w a l a , Dectron's president, CEO, and chairman, said that in addition to manufacturing, marketing and administrative synergies, the a c q u i s i t i o n of C a s c a d e filled gaps in Dectron's product line and engineering expertise in the IAQ segment, the thrust of Dectron's strategic direction. Lakdawala said this a c q u i s i t i o n s o l i d i f i e d Dect r o n ' s lead in the rapidly expanding commercial air filtration segment which is driven by sick building health and environmental concerns. Dectron manufactures and supplies products for the dehu-
midification, refrigeration, air conditioning, energy recycling, and indoor air quality markets for commercial establishments.
FLORIDA FIRST FOR US FILTER US Filter has signed a US$5 million agreement with Jupiter Island, Florida to operate and manage the city's recently acquired water and wastewater utilities. The three-year agreement with US F i l t e r ' s O p e r a t i n g Services group represents one of Florida's first total water utility management contracts between a municipality and a private company. It also marks one of the first times that a Florida municipality has jointly negotiated the acquisition of two separate utility companies while negotiating for the operation and management of those systems with a private firm. The US F i l t e r c o n t r a c t involves the management of all water utility services, including meter reading, billing and collection services, and the operation and maintenance of two water treatment facilities and one wastewater treatment facility. US F i l t e r ' s Distribution Group will manage a meter replacement programme for the town. "Once the town looked into the future of w a t e r - r e l a t e d issues, Jupiter Island residents made a decision to ensure a long-term supply of water and water-related services," said Phillip Gildan of Greenberg & Traurig, who consulted with the city on the a g r e e m e n t . "'This decision required the acquisition of two separate utility companies and the selection of a private operating company with a d e m o n s t r a t e d track record for managing related operations and services." Jupiter Island's two water treatment facilities are both 2.2 million gallons per day (MGD) facilities. The town's wastewater treatment facility is a
1.2 MGD facility, with approximately 70 lift stations. US F i l t e r is now o p e r a t i n g the treatment plants, as well as managing the utility service systems.
EEC WINS PRECIPITATOR CONTRACTS Environmental Elements Corporation has been a w a r d e d three c o n t r a c t s , worth US$12 million, to provide air pollution control equipment and services for North American companies serving the power, cement, and paper industries. The first c o n t r a c t was awarded by Foster W h e e l e r Ltd to supply an electrostatic precipitator for an independent power production plant located in Ontario, Canada. The contract is the second awarded in the last six months for work in Northern Ontario. EEC anticipates that the e n g i n e e r i n g work and shipment of the precipitator will be completed by May 1999. EEC's second contract was a w a r d e d by A i r T e k E n g i neering and Construction Inc for the upgrade to an electrostatic precipitator that services industrial process production kilns. The precipitator, originally manufactured by EEC, will be retrofitted with EEC's particulate collecting plates and R i g i t r o d e ® D i s c h a r g e E l e c t r o d e s . The plates and electrodes generate the electrical field required to remove particles during the production process. EEC will serve as a subcontractor to AirTek, which is based in Troy, Alabama for this project. Work will begin in January 1999. The third c o n t r a c t was a w a r d e d by C o n s o l i d a t e d Papers lnc to supply new internal components for one of the six electrostatic precipitators d e s i g n e d by E E C at its Wisconsin Rapids plant.
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FLANDERS EXPANDS STOCK BUYBACK Flanders Corp's board of directors has approved a new repurchase programme of up to an additional 1 million shares of the c o m p a n y ' s common stock. The repurchase is in addition to the stock buyback programme Flanders announced in April 1998 for up to 1 million shares of its c o m m o n stock. From time to time, at market prices and as market and business conditions warrant, the company may repurchase such shares for cash in open market, n e g o t i a t e d or block transactions. No time limit was set for completion of the programme and there is no a s s u r a n c e that such a programme will be completed. Flanders designs, manufactures and markets a full range of air filtration products r a n g i n g f r o m high p e r f o r mance laminar flow high efficiency particulate air filters and carbon filters for semiconductor manufacturing facilities to residential furnace filters.
DONALDSON EXTENDS STOCK REPURCHASE PROGRAMME Donaldson Company Inc's board of directors has authorised the repurchase of up to 5 million common shares. The board has also increased the common stock cash dividend by 20 per cent, by declaring a cash dividend of US$0.06 per share, payable on 15 December 1998, to shareh o l d e r s of r e c o r d on 4 December 1998. At the current dividend rate of US$0.20 per share per annum, cash dividends to shareholders have increased at a compound annual rate of 14 per cent over the last nine years. The current declaration is the 173rd consecutive quarterly cash divi-
Filtration Industry Analyst
dend paid by the company. As of 31 October 1998, there were a p p r o x i m a t e l y 47 500 000 shares outstanding. The repurchase authorisation of 5 m i l l i o n c o m m o n shares, w h i c h is e f f e c t i v e through the end of January 2001, increases and extends the existing repurchase authority that was due to expire at the end of January 2000. Of the 4 million shares authorised to be repurchased under this expiring a u t h o r i t y , 2.2 m i l l i o n shares were bought over the past year. The c o m p a n y ' s shares are traded on the New York Stock Exchange under the symbol DCI.
DECTRON GROWS AIR FILTRATION BUSINESS Montreal-based Dectron Internationale Inc, an engin e e r i n g leader in the HVAC/air filtration industry, is to acquire the capital stock of Cascade Technologies, PM W r i g h t , and C i r c u l a i r e Group. Based in Montreal, Cascade specialises in air, gas, dust and fume filtration, indoor air q u a l i t y (IAQ) and heat r e c o v e r y . The t r a n s a c t i o n should be completed by yearend and no terms were disclosed. Commenting on the acqui s i t i o n , Ness L a k d a w a l a , Dectron's president, CEO, and chairman, said that in addition to manufacturing, marketing and administrative synergies, the a c q u i s i t i o n of C a s c a d e filled gaps in Dectron's product line and engineering expertise in the IAQ segment, the thrust of Dectron's strategic direction. Lakdawala said this a c q u i s i t i o n s o l i d i f i e d Dect r o n ' s lead in the rapidly expanding commercial air filtration segment which is driven by sick building health and environmental concerns. Dectron manufactures and supplies products for the dehu-
midification, refrigeration, air conditioning, energy recycling, and indoor air quality markets for commercial establishments.
FLORIDA FIRST FOR US FILTER US Filter has signed a US$5 million agreement with Jupiter Island, Florida to operate and manage the city's recently acquired water and wastewater utilities. The three-year agreement with US F i l t e r ' s O p e r a t i n g Services group represents one of Florida's first total water utility management contracts between a municipality and a private company. It also marks one of the first times that a Florida municipality has jointly negotiated the acquisition of two separate utility companies while negotiating for the operation and management of those systems with a private firm. The US F i l t e r c o n t r a c t involves the management of all water utility services, including meter reading, billing and collection services, and the operation and maintenance of two water treatment facilities and one wastewater treatment facility. US F i l t e r ' s Distribution Group will manage a meter replacement programme for the town. "Once the town looked into the future of w a t e r - r e l a t e d issues, Jupiter Island residents made a decision to ensure a long-term supply of water and water-related services," said Phillip Gildan of Greenberg & Traurig, who consulted with the city on the a g r e e m e n t . "'This decision required the acquisition of two separate utility companies and the selection of a private operating company with a d e m o n s t r a t e d track record for managing related operations and services." Jupiter Island's two water treatment facilities are both 2.2 million gallons per day (MGD) facilities. The town's wastewater treatment facility is a
1.2 MGD facility, with approximately 70 lift stations. US F i l t e r is now o p e r a t i n g the treatment plants, as well as managing the utility service systems.
EEC WINS PRECIPITATOR CONTRACTS Environmental Elements Corporation has been a w a r d e d three c o n t r a c t s , worth US$12 million, to provide air pollution control equipment and services for North American companies serving the power, cement, and paper industries. The first c o n t r a c t was awarded by Foster W h e e l e r Ltd to supply an electrostatic precipitator for an independent power production plant located in Ontario, Canada. The contract is the second awarded in the last six months for work in Northern Ontario. EEC anticipates that the e n g i n e e r i n g work and shipment of the precipitator will be completed by May 1999. EEC's second contract was a w a r d e d by A i r T e k E n g i neering and Construction Inc for the upgrade to an electrostatic precipitator that services industrial process production kilns. The precipitator, originally manufactured by EEC, will be retrofitted with EEC's particulate collecting plates and R i g i t r o d e ® D i s c h a r g e E l e c t r o d e s . The plates and electrodes generate the electrical field required to remove particles during the production process. EEC will serve as a subcontractor to AirTek, which is based in Troy, Alabama for this project. Work will begin in January 1999. The third c o n t r a c t was a w a r d e d by C o n s o l i d a t e d Papers lnc to supply new internal components for one of the six electrostatic precipitators d e s i g n e d by E E C at its Wisconsin Rapids plant.
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