- Email: [email protected]
Mergers & Acquisitions Review 2007
MERGERS & ACQUISITIONS
Mergers & Acquisitions Review 2007 In the second part of Filtration Industry Analyst’s review of 2007’s mergers and acquisitions, we list the deals that took place during the second and first quarers of 2007. The first part of this feature – covering the fourth and third quarters – was published in the January 2008 issue of Filtration Industry Analyst.
Second quarter 2007 Comment
Company
Activity
Donaldson
Donaldson’s South African subsidiary acquired the assets of Rawsen Equipment (Proprietary) Ltd, a privately held company headquartered in Cape Town, South Africa, effective 1 June 2007. Rawsen manufactures and distributes a wide range of filtration products for compressed air and gas applications (see Filtration Industry Analyst, October 2007).
The acquisition of Rawsen creates a complete product line offering for the compressed air and gas industry in South Africa. The plan is to integrate the existing Donaldson Ultrafilter product line into Rawsen’s to provide a strong range of compressed air and gas purification products for South African customers. www.donaldson.com
Pak/Teem
Moved into filtration by acquiring the assets of Air Filters & Equipment LLC (AF&E), a filter masnufacturer and media supplier based in Rock Hill, South Carolina (see Filtration Industry Analyst, July 2007).
The acquisition adds more than US$2 million in revenues and 17 employees to the Pak/Teem operation, expanding the company’s product offerings to include filtration engineering, equipment manufacturing and services. www.pakteem.com and www.airfilterequipment.com
The Shaw Group
Made an equity investment in Blue Water Technologies Inc, a privately-held water treatment technology company based in Coeur d’Alene, Idaho, USA (see Filtration Industry Analyst, June 2007). Blue Water Technologies originated as a technology transfer from the University of Idaho.
This capital injection should help Blue Water to expand into new markets and projects, while Shaw Environmental & Infrastructure builds its water management platform. www.shawgrp.com and www.blueh2o.net
Cemtrex
Completed the purchase of Griffin Filters, a manufacturer of fabric filters for industrial and construction applications for more than 40 years. Griffin supplies shaker type filters for the concrete and aggregate industry and pulse jet filters for chemical, pharmaceutical, cement, food and other applications (see Filtration Industry Analyst, June 2007).
The addition of Griffin marks Cemtrex’s entry into the dust collection, environmental control and product recovery areas, which are markets offering significant long-term growth potential. Cemtrex plans to leverage its emission monitor sales through the existing network of Griffin’s customers, distributors and sales representatives. www.cemtrex.com and www.griffinfilters.com
Clyde Process Solutions
Bought MAC Equipment Inc, a US provider of pneumatic conveying and filtration systems within North America, in a £43 million deal (see Filtration Industry Analyst, June 2007).
Clyde Process Solutions directors intend to develop an air filtration business for the company using MAC Equipment’s existing infrastructure, which will be enhanced by the process expertise of sister company Clyde Materials Handling. www.clydeprocesssolutions.com and www.macequipment.com
DXP Enterprises
Acquired Delta Process Equipment Inc, a full service provider of pumps, pump repair and service, pump stations, water booster stations, sewage treatment plants, blowers, process gas compressors, controls, filtration equipment and ancillary products.
The acquisition diversifies DXP’s customer base in the municipal, wastewater and downstream industrial pump markets while adding new product lines and allowing DXP to leverage synergies across new geographic areas. www.dxpe.com
Mahle Group
Acquired Siemens VDO’s air intake module and air filtration business division (see Filtration Industry Analyst, June 2007). The main products are air intake modules and air filter systems for passenger car gasoline and diesel engines.
With this acquisition, Mahle is further expanding its worldwide activities in the air intake systems and air filtration division. www.mahle.com
Sartorius
Acquired Stedim SA (see Filtration Industry Analyst, March 2007).
The German company then combined its Biotechnology Division, with Stedim’s business to create Sartorius Stedim Biotech SA. www.sartorius-stedim.com
10
Filtration Industry Analyst
February 2008
MERGERS & ACQUISITIONS Ahlstrom
Completed the 7 million acquisition of Italy’s Fabriano Filter Media SpA (see Filtration Industry Analyst, June 2007).
The addition of Fabriano’s portfolio gives Ahlstrom access to the growing high efficiency air filtration market as well as complementing its offering in other segments such as liquid filtration. www.ahlstrom.com and www.fabrianofiltermedia.com
First quarter 2007 Doughty Hanson &Co
Announced plans to acquire Norit for an undisclosed sum from the Dutch private equity firm Gilde Buy Out Partners (see Filtration Industry Analyst, May 2007).
Norit’s strong product portfolio and exposure to the global water market make this an attractive acquisition for Doughty Hanson, with considerable growth potential. www.norit.com and www.doughtyhanson.com
Cantel Medical’s Mar Cor Purification Division
Completed the purchase of GE Water & Process Technologies’ water dialysis business for US$30.6 million in cash (see Filtration Industry Analyst, April 2007).
The acquisition expands Cantel Medical’s water treatment division by 50%. www.cantelmedical.com
Myriad Medical Holdings
Acquired South Africa’s Filterworks (Pty) Ltd for R13 million (see Filtration Industry Analyst, May 2007).
Filterworks was incorporated for the purpose of acquiring the medical filter business of Pall Europe Ltd in South Africa and SubSaharan Africa from Pall South Africa (Pty) Ltd. www.pall.com
Pentair
Acquired Porous Media, a privately-held US company with manufacturing operations in Minnesota and Texas for US$225 million (see Filtration Industry Analyst, March 2007).
The acquisition accelerates Pentair’s water strategy by strengthening its filtration and separation technology portfolio and extending its reach into attractive new markets. www.pentair.com
Clarcor
Bought an 80% ownership share in Sinfa SA, a manufacturer of automotive and heavy-duty engine filters based in Casablanca, Morocco (see Filtration Industry Analyst, March 2007). The remaining 20% share will continue to be held by the company’s current shareholders, led by Ali Moamah.
Clarcor has had a relationship with Sinfa as both a customer and a supplier for many years. The new partnership gives Clarcor the opportunity to expand the manufacture of the Baldwin brand of filters for distribution to customers throughout Europe, North Africa and the Middle East. www.clarcor.com and www.sinfa.ma
QinetiQ
Sold its Air Filtration Systems Inc (AFS) subsidiary to Donaldson Inc for US$39.0 million in cash (see Filtration Industry Analyst, March 2007).
The divestment is in line with QinetiQ’s strategy to dispose of businesses that are non-core to the group. www.donaldson.com
Porvair
Acquired the business and assets of OmniFilter and Manufacturing Inc, based in Richmond, Virginia (see Filtration Industry Analyst, March 2007).
OmniFilter will join Porvair’s Microfiltration division, which has grown its sales into the US in recent years. www.omnifilter.com
Parker Hannifin
Bought Airtek, a Lancaster, New Yorkbased provider of drying and filtration equipment for compressed air (see Filtration Industry Analyst, March 2007).
Airtek will operate as part of Parker’s global filtration business. www.parker.com
Clarcor
Acquired Newton Tool & Manufacturing Co’s synthetic fibres filtration business (see Filtration Industry Analyst, February 2007).
The synthetic fibres filtration business, including all the related production equipment, will be moved into Clarcor’s Purolator EFP operations in Houston, Texas and Shelby, North Carolina. www.clarcor.com
Siemens Water Technologies
Took over four US companies - Envirotrol, CEC, Ultrapure Solutions and Sunlight Systems - with total sales of US$25 million (see Filtration Industry Analyst, February 2007).
Envirotrol and CEC expand SWT’s US service portfolio for activated carbon water treatment while Ultrapure Solutions and Sunlight Systems extends the range of deionisation and disinfection products. www.water.siemens.com
Daikin Industries
Completed the acquisition of OYL Industries Berhad (see Filtration Industry Analyst, February 2007).
OYL Industries Berhad is the parent company of AAF Filtration. www.aafintl.com
Sulzer Chemtech
Signed an agreement with KnitMesh Ltd to take over the UK company’s separation technology business for approximately SFr13 million (see Filtration Industry Analyst, March 2007).
The acquisition includes Enhanced Separation Technologies based in the US. KnitMesh, a Sulzer Chemtech supplier, is based in Greenfield, North Wales and supplies mist eliminators, wire mesh and vane mist eliminators. www.sulzerchemtech.com
Novasep
Acquired by its management and a Gildeled investor group (see Filtration Industry Analyst, January 2007).
Novasep continues to operate through two divisions: Novasep Synthesis and Novasep Process. www.novasep.com
February 2008
Filtration Industry Analyst
11
Mergers & Acquisitions Review 2007 In the second part of Filtration Industry Analyst’s review of 2007’s mergers and acquisitions, we list the deals that took place during the second and first quarers of 2007. The first part of this feature – covering the fourth and third quarters – was published in the January 2008 issue of Filtration Industry Analyst.
Second quarter 2007 Comment
Company
Activity
Donaldson
Donaldson’s South African subsidiary acquired the assets of Rawsen Equipment (Proprietary) Ltd, a privately held company headquartered in Cape Town, South Africa, effective 1 June 2007. Rawsen manufactures and distributes a wide range of filtration products for compressed air and gas applications (see Filtration Industry Analyst, October 2007).
The acquisition of Rawsen creates a complete product line offering for the compressed air and gas industry in South Africa. The plan is to integrate the existing Donaldson Ultrafilter product line into Rawsen’s to provide a strong range of compressed air and gas purification products for South African customers. www.donaldson.com
Pak/Teem
Moved into filtration by acquiring the assets of Air Filters & Equipment LLC (AF&E), a filter masnufacturer and media supplier based in Rock Hill, South Carolina (see Filtration Industry Analyst, July 2007).
The acquisition adds more than US$2 million in revenues and 17 employees to the Pak/Teem operation, expanding the company’s product offerings to include filtration engineering, equipment manufacturing and services. www.pakteem.com and www.airfilterequipment.com
The Shaw Group
Made an equity investment in Blue Water Technologies Inc, a privately-held water treatment technology company based in Coeur d’Alene, Idaho, USA (see Filtration Industry Analyst, June 2007). Blue Water Technologies originated as a technology transfer from the University of Idaho.
This capital injection should help Blue Water to expand into new markets and projects, while Shaw Environmental & Infrastructure builds its water management platform. www.shawgrp.com and www.blueh2o.net
Cemtrex
Completed the purchase of Griffin Filters, a manufacturer of fabric filters for industrial and construction applications for more than 40 years. Griffin supplies shaker type filters for the concrete and aggregate industry and pulse jet filters for chemical, pharmaceutical, cement, food and other applications (see Filtration Industry Analyst, June 2007).
The addition of Griffin marks Cemtrex’s entry into the dust collection, environmental control and product recovery areas, which are markets offering significant long-term growth potential. Cemtrex plans to leverage its emission monitor sales through the existing network of Griffin’s customers, distributors and sales representatives. www.cemtrex.com and www.griffinfilters.com
Clyde Process Solutions
Bought MAC Equipment Inc, a US provider of pneumatic conveying and filtration systems within North America, in a £43 million deal (see Filtration Industry Analyst, June 2007).
Clyde Process Solutions directors intend to develop an air filtration business for the company using MAC Equipment’s existing infrastructure, which will be enhanced by the process expertise of sister company Clyde Materials Handling. www.clydeprocesssolutions.com and www.macequipment.com
DXP Enterprises
Acquired Delta Process Equipment Inc, a full service provider of pumps, pump repair and service, pump stations, water booster stations, sewage treatment plants, blowers, process gas compressors, controls, filtration equipment and ancillary products.
The acquisition diversifies DXP’s customer base in the municipal, wastewater and downstream industrial pump markets while adding new product lines and allowing DXP to leverage synergies across new geographic areas. www.dxpe.com
Mahle Group
Acquired Siemens VDO’s air intake module and air filtration business division (see Filtration Industry Analyst, June 2007). The main products are air intake modules and air filter systems for passenger car gasoline and diesel engines.
With this acquisition, Mahle is further expanding its worldwide activities in the air intake systems and air filtration division. www.mahle.com
Sartorius
Acquired Stedim SA (see Filtration Industry Analyst, March 2007).
The German company then combined its Biotechnology Division, with Stedim’s business to create Sartorius Stedim Biotech SA. www.sartorius-stedim.com
10
Filtration Industry Analyst
February 2008
MERGERS & ACQUISITIONS Ahlstrom
Completed the 7 million acquisition of Italy’s Fabriano Filter Media SpA (see Filtration Industry Analyst, June 2007).
The addition of Fabriano’s portfolio gives Ahlstrom access to the growing high efficiency air filtration market as well as complementing its offering in other segments such as liquid filtration. www.ahlstrom.com and www.fabrianofiltermedia.com
First quarter 2007 Doughty Hanson &Co
Announced plans to acquire Norit for an undisclosed sum from the Dutch private equity firm Gilde Buy Out Partners (see Filtration Industry Analyst, May 2007).
Norit’s strong product portfolio and exposure to the global water market make this an attractive acquisition for Doughty Hanson, with considerable growth potential. www.norit.com and www.doughtyhanson.com
Cantel Medical’s Mar Cor Purification Division
Completed the purchase of GE Water & Process Technologies’ water dialysis business for US$30.6 million in cash (see Filtration Industry Analyst, April 2007).
The acquisition expands Cantel Medical’s water treatment division by 50%. www.cantelmedical.com
Myriad Medical Holdings
Acquired South Africa’s Filterworks (Pty) Ltd for R13 million (see Filtration Industry Analyst, May 2007).
Filterworks was incorporated for the purpose of acquiring the medical filter business of Pall Europe Ltd in South Africa and SubSaharan Africa from Pall South Africa (Pty) Ltd. www.pall.com
Pentair
Acquired Porous Media, a privately-held US company with manufacturing operations in Minnesota and Texas for US$225 million (see Filtration Industry Analyst, March 2007).
The acquisition accelerates Pentair’s water strategy by strengthening its filtration and separation technology portfolio and extending its reach into attractive new markets. www.pentair.com
Clarcor
Bought an 80% ownership share in Sinfa SA, a manufacturer of automotive and heavy-duty engine filters based in Casablanca, Morocco (see Filtration Industry Analyst, March 2007). The remaining 20% share will continue to be held by the company’s current shareholders, led by Ali Moamah.
Clarcor has had a relationship with Sinfa as both a customer and a supplier for many years. The new partnership gives Clarcor the opportunity to expand the manufacture of the Baldwin brand of filters for distribution to customers throughout Europe, North Africa and the Middle East. www.clarcor.com and www.sinfa.ma
QinetiQ
Sold its Air Filtration Systems Inc (AFS) subsidiary to Donaldson Inc for US$39.0 million in cash (see Filtration Industry Analyst, March 2007).
The divestment is in line with QinetiQ’s strategy to dispose of businesses that are non-core to the group. www.donaldson.com
Porvair
Acquired the business and assets of OmniFilter and Manufacturing Inc, based in Richmond, Virginia (see Filtration Industry Analyst, March 2007).
OmniFilter will join Porvair’s Microfiltration division, which has grown its sales into the US in recent years. www.omnifilter.com
Parker Hannifin
Bought Airtek, a Lancaster, New Yorkbased provider of drying and filtration equipment for compressed air (see Filtration Industry Analyst, March 2007).
Airtek will operate as part of Parker’s global filtration business. www.parker.com
Clarcor
Acquired Newton Tool & Manufacturing Co’s synthetic fibres filtration business (see Filtration Industry Analyst, February 2007).
The synthetic fibres filtration business, including all the related production equipment, will be moved into Clarcor’s Purolator EFP operations in Houston, Texas and Shelby, North Carolina. www.clarcor.com
Siemens Water Technologies
Took over four US companies - Envirotrol, CEC, Ultrapure Solutions and Sunlight Systems - with total sales of US$25 million (see Filtration Industry Analyst, February 2007).
Envirotrol and CEC expand SWT’s US service portfolio for activated carbon water treatment while Ultrapure Solutions and Sunlight Systems extends the range of deionisation and disinfection products. www.water.siemens.com
Daikin Industries
Completed the acquisition of OYL Industries Berhad (see Filtration Industry Analyst, February 2007).
OYL Industries Berhad is the parent company of AAF Filtration. www.aafintl.com
Sulzer Chemtech
Signed an agreement with KnitMesh Ltd to take over the UK company’s separation technology business for approximately SFr13 million (see Filtration Industry Analyst, March 2007).
The acquisition includes Enhanced Separation Technologies based in the US. KnitMesh, a Sulzer Chemtech supplier, is based in Greenfield, North Wales and supplies mist eliminators, wire mesh and vane mist eliminators. www.sulzerchemtech.com
Novasep
Acquired by its management and a Gildeled investor group (see Filtration Industry Analyst, January 2007).
Novasep continues to operate through two divisions: Novasep Synthesis and Novasep Process. www.novasep.com
February 2008
Filtration Industry Analyst
11