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Flowserve completes US$1bn credit facility
IN BRIEF/NEWS
In Brief UÊ
>Ì>Ê ÀiÊ ÀÕ«Ê Ì`Ê ÃÕLÃ`>ÀÞÊ Allight Holdings Pty Ltd has completed its acquisition of Pump Rentals Pty Ltd, owner of the Sykes Group (see Pump Industry Analyst, October 2010). Sykes is one of the world’s largest manufacturers of auto-prime pumps. Allight Pty Ltd will cease to distribute Godwin wetends in Australia from May 2011. www.allightsykes.com/pumps, www. sykesgroup.com and www.nationalhire. com.au UÊ GE is to make an US$800 million offer for Wellstream Holdings plc, an engineer and manufacturer of flexible pipeline products for oil and gas transportation in the subsea production industry. Wellstream will broaden GE Oil & Gas’s subsea production systems equipment and service capabilities. It also will enhance GE’s ability to capitalise on growth in Brazil, Africa and Asia. Wellstream operates two manufacturing facilities in Newcastle, UK, and Niterói, Brazil, employing approximately 850 qualified engineers and staff. www.ge.com and www.wellstream.com UÊ Larox Flowsys Oy has opened an Australian sales office in Frenchs Forest, near Sydney. “We strongly believe that this decision will significantly improve the availability of our products and services in the region,” said Martti Lahtinen, managing director of Larox Flowsys Pty Ltd. “Larox Flowsys products already have strong presence and satisfied customers as well as tight connections with the Australian mining industry.” www.larox.fi UÊ Freudenberg Oil & Gas is acquiring Singapore-headquartered Offshore Seals (Asia) Pte Ltd. Offshore Seals manufactures specialised seals for the upstream segment of the oil & gas industry, including elastomeric seals and O-rings. “Offshore Seals supports our international expansion plans and enables us to deliver seal technology and solutions to our customers worldwide,” said Richard Schmidt, president, Freudenberg Oil & Gas. Freudenberg is pursuing growth in the oil & gas industry as a strategic initiative to expand its sealing technology business. www.freudenberg-oilandgas.com and www.offshoreseals.com
12
Pump Industry Analyst
Aker Solutions to split into 3 separate companies
I
nternational oil services, engineering and construction company Aker Solutions is to split into three, establishing P&C International and Aker Contractors as separate companies in an effort to accelerate growth. The future Aker Solutions will provide engineering, technologies, solutions and services for the upstream oil and gas industry, including deepwater drilling technologies, subsea oil and gas production systems, well services, mooring and offloading systems, wellstream processing technologies, as well as life-of-field solutions through its maintenance, modification and operations business. Aker Contractors will be an engineering, procurement and construction (EPC) company with a strong position in the North Sea field development market. The new company will continue to target offshore and onshore EPC field development projects. A listing of Aker Contractors on the Oslo Stock Exchange is tentatively scheduled for the second half of 2011. Process & Construction International will supply engineering and construction services to three onshore industry segments: mining and metals, energy and environmental and downstream oil, gas and processing. The company will operate under a separate brand name, with a possible listing in 2011.
For further information, visit www.akersolutions.com
DXP Enterprises buys D&F Distributors
D
XP Enterprises Inc has completed the acquisition of substantially all of the assets of D&F Distributors Inc in a US$13.4 million deal. D&F distributes and services industrial, commercial and municipal pumps and fabricates pump packages. Headquartered in Indiana, D&F operates in Indiana, Kentucky, Tennessee and Ohio and has annual sales of approximately US$22 million. The purchase price of US$13.4 million consisted of approximately US$7.4 million paid in cash, US$2.9 million in the form of
promissory notes bearing interest at a rate of 5%, and 155 393 shares of DXP common stock. The cash portion of the purchase price was funded by borrowings under DXP’s existing credit facility. For further information, visit www.dxpe.com and www. dfdistrib.com
Flowserve completes US$1bn credit facility
F
lowserve Corp has completed a new U$$1 billion, five-year credit facility, which includes a US$500 million term loan and a US$500 million revolver that the company can increase, subject to certain conditions, by up to US$200 million. The new facility, which was led by Bank of America NA, replaces Flowserve’s existing facility that was scheduled to mature in August 2012. “We are pleased to complete this new credit facility. Although general credit markets are notably tighter than when we completed our existing facility in 2005, we are encouraged by the high level of support received from the banking community,” said Dean Freeman, Flowserve senior vice president, finance and treasurer. For further information, visit www.flowserve.com
AO Smith to sell electric motor division to Regal Beloit
A
O Smith Corp has entered into a definitive agreement to sell its Electrical Products Co to Regal Beloit Corp in a deal valued at US$875 million. Electrical Products Co is one of the largest manufacturers of electric motors for residential and commercial applications in North America. Commenting on the deal, AO Smith chairman and CEO Paul Jones said: “The electric motor industry has been undergoing a significant transformation over the last several years due to global consolidation and the emergence of a number of international competitors. The consolidation in the marketplace, which has accelerated this year,
December 2010
In Brief UÊ
>Ì>Ê ÀiÊ ÀÕ«Ê Ì`Ê ÃÕLÃ`>ÀÞÊ Allight Holdings Pty Ltd has completed its acquisition of Pump Rentals Pty Ltd, owner of the Sykes Group (see Pump Industry Analyst, October 2010). Sykes is one of the world’s largest manufacturers of auto-prime pumps. Allight Pty Ltd will cease to distribute Godwin wetends in Australia from May 2011. www.allightsykes.com/pumps, www. sykesgroup.com and www.nationalhire. com.au UÊ GE is to make an US$800 million offer for Wellstream Holdings plc, an engineer and manufacturer of flexible pipeline products for oil and gas transportation in the subsea production industry. Wellstream will broaden GE Oil & Gas’s subsea production systems equipment and service capabilities. It also will enhance GE’s ability to capitalise on growth in Brazil, Africa and Asia. Wellstream operates two manufacturing facilities in Newcastle, UK, and Niterói, Brazil, employing approximately 850 qualified engineers and staff. www.ge.com and www.wellstream.com UÊ Larox Flowsys Oy has opened an Australian sales office in Frenchs Forest, near Sydney. “We strongly believe that this decision will significantly improve the availability of our products and services in the region,” said Martti Lahtinen, managing director of Larox Flowsys Pty Ltd. “Larox Flowsys products already have strong presence and satisfied customers as well as tight connections with the Australian mining industry.” www.larox.fi UÊ Freudenberg Oil & Gas is acquiring Singapore-headquartered Offshore Seals (Asia) Pte Ltd. Offshore Seals manufactures specialised seals for the upstream segment of the oil & gas industry, including elastomeric seals and O-rings. “Offshore Seals supports our international expansion plans and enables us to deliver seal technology and solutions to our customers worldwide,” said Richard Schmidt, president, Freudenberg Oil & Gas. Freudenberg is pursuing growth in the oil & gas industry as a strategic initiative to expand its sealing technology business. www.freudenberg-oilandgas.com and www.offshoreseals.com
12
Pump Industry Analyst
Aker Solutions to split into 3 separate companies
I
nternational oil services, engineering and construction company Aker Solutions is to split into three, establishing P&C International and Aker Contractors as separate companies in an effort to accelerate growth. The future Aker Solutions will provide engineering, technologies, solutions and services for the upstream oil and gas industry, including deepwater drilling technologies, subsea oil and gas production systems, well services, mooring and offloading systems, wellstream processing technologies, as well as life-of-field solutions through its maintenance, modification and operations business. Aker Contractors will be an engineering, procurement and construction (EPC) company with a strong position in the North Sea field development market. The new company will continue to target offshore and onshore EPC field development projects. A listing of Aker Contractors on the Oslo Stock Exchange is tentatively scheduled for the second half of 2011. Process & Construction International will supply engineering and construction services to three onshore industry segments: mining and metals, energy and environmental and downstream oil, gas and processing. The company will operate under a separate brand name, with a possible listing in 2011.
For further information, visit www.akersolutions.com
DXP Enterprises buys D&F Distributors
D
XP Enterprises Inc has completed the acquisition of substantially all of the assets of D&F Distributors Inc in a US$13.4 million deal. D&F distributes and services industrial, commercial and municipal pumps and fabricates pump packages. Headquartered in Indiana, D&F operates in Indiana, Kentucky, Tennessee and Ohio and has annual sales of approximately US$22 million. The purchase price of US$13.4 million consisted of approximately US$7.4 million paid in cash, US$2.9 million in the form of
promissory notes bearing interest at a rate of 5%, and 155 393 shares of DXP common stock. The cash portion of the purchase price was funded by borrowings under DXP’s existing credit facility. For further information, visit www.dxpe.com and www. dfdistrib.com
Flowserve completes US$1bn credit facility
F
lowserve Corp has completed a new U$$1 billion, five-year credit facility, which includes a US$500 million term loan and a US$500 million revolver that the company can increase, subject to certain conditions, by up to US$200 million. The new facility, which was led by Bank of America NA, replaces Flowserve’s existing facility that was scheduled to mature in August 2012. “We are pleased to complete this new credit facility. Although general credit markets are notably tighter than when we completed our existing facility in 2005, we are encouraged by the high level of support received from the banking community,” said Dean Freeman, Flowserve senior vice president, finance and treasurer. For further information, visit www.flowserve.com
AO Smith to sell electric motor division to Regal Beloit
A
O Smith Corp has entered into a definitive agreement to sell its Electrical Products Co to Regal Beloit Corp in a deal valued at US$875 million. Electrical Products Co is one of the largest manufacturers of electric motors for residential and commercial applications in North America. Commenting on the deal, AO Smith chairman and CEO Paul Jones said: “The electric motor industry has been undergoing a significant transformation over the last several years due to global consolidation and the emergence of a number of international competitors. The consolidation in the marketplace, which has accelerated this year,
December 2010