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Mergers & Acquisitions Review 2012
MERGERS & ACQUISITIONS REVIEW
Mergers & Acquisitions Review 2012
P
ump Industry Analyst looks back at the mergers and acquisitions that helped to reshape the pump industry during 2012. The deals completed in the first and second quarters of 2012 are listed here. Third and fourth quarter activity will be covered in the February 2013 issue of Pump Industry Analyst.
First quarter 2012 Company
Activity
Comment
Sulzer Ltd
Completed the acquisition of the privately-owned Spanish pump company Hidrotecar SA (see Pump Industry Analyst, January 2012 and November 2011). Based in Burgos, Hidrotecar had sales of E13 million in 2010 and employs about 50 people.
With the acquisition of Hidrotecar, Sulzer Pumps adds a new manufacturing, assembly and service facility mainly serving water customers in Europe, the Middle East and Africa. The acquisition also strengthens Sulzer Pumps’ aftermarket presence in the water sector. www.sulzer.com and www.hidrotecar.com
Hertz Equipment Rental Corp (HERC)
Acquired DW Pumps, a pump rental company based in Northern California (see Pump Industry Analyst, January 2012). DW Pumps specialises in providing pump solutions for industrial, municipal and construction customers on the US West coast. The pump rental company was founded in 2003 and is headquartered in San Leandro, California with a second location in Sacramento. The DW Pumps fleet includes large submersible pumps and diesel auto priming and high pressure pumps.
DW Pumps is expected to generate approximately US$6 million in new revenues for Hertz Equipment Rental Corp during 2012. www.hertzequip.com
Sany Heavy Industry Co Ltd
Announced the acquisition of Putzmeister Holding GmbH, the German concrete pump manufacturer (see Pump Industry Analyst, February 2012). Aichtal, Germany-headquartered Putzmeister specialises in construction machinery, particularly concrete pumps, for the building and mining industries, as well as for tunnel construction and large-scale industrial projects. Putzmeister has 3000 employees and generated revenues of about E570 million in 2011.
Chinese construction machinery company Sany, together with the Chinese Private Equity company CITIC PE Advisors (Hong Kong) Ltd as a minority shareholder, acquired 100% of the privately-owned Putzmeister in a deal that created a new global leader in concrete pumps. Putzmeister continues to operate with a high degree of independence in day-to-day management, with Norbert Scheuch remaining as CEO. Scheuch has also joined the Sany executive board. Aichtal is now Sany’s new world headquarters for concrete machinery outside of China. www.putzmeister.com and www.sanygroup.com
Interpump Group
Bought 53% of the share capital of Galtech SpA in a E3.3 million deal (see Pump Industry Analyst, February 2012). Galtech, which is headquartered in Reggio Emilia, specialises in the production and sale of pumps and gear motors, hydraulic distributors and accessories and components. Half of the E3.3 million purchase price was paid in cash and the other half in Interpump Group SpA shares.
The sellers have the right to sell the remaining 47% between the date on which the 2014 financial statements are approved and the date on which the 2025 financial statements are approved. www.galtech.it and www.interpumpgroup.it
HMS Group
Outlined plans to acquire an additional 11% of the share capital of Dimitrovgradkhimmash (DGHM) in a US$6.9 million deal (see Pump Industry Analyst, February 2012). The move increases HMS’s stake in DGHM to 51%. Founded in 1931, DGHM manufactures equipment, including pumps, for oil refineries, chemical, petrochemical and gas processing plants. For the FY2011, DGHM had revenues of US$53 million.
The acquisition of DGHM is consistent with HMS’s growth strategy and enhances the Russian company’s existing product offering. www.hms.ru
Colfax Corp
Transformed itself by acquiring Charter International plc in a US$2.4 billion cash
Charter’s Howden division, which focuses on air and
and stock deal (see Pump Industry Analyst, September 2011)
gas handling, will complement and extend Colfax’s existing fluid handling business, while Charter’s ESAB business, which provides welding and cutting solutions, will become the foundation of a new growth platform for Colfax. www.colfaxcorp.com
Wärtsilä Corp
12
Completed the acquisition of the engineering company Hamworthy plc (see Pump Industry Analyst, February 2012 and November 2011).
Pump Industry Analyst
The acquisition of Hamworthy is a major step in Wärtsilä’s strategy to strengthen its position as a total solutions provider. Hamworthy brings strong, complementary technologies to the Finnish power solutions company. www.wartsila.com and www.hamworthy.com
January 2013
MERGERS & ACQUISITIONS REVIEW Company
Activity
Comment
Indutrade AB
Acquired the Swedish company Rostfria VA-System i Storfors AB, a manufacturer of corrosion-resistant pump stations and pipe systems (see Pump Industry Analyst, February 2012)
With annual sales of SEK15 million, Rostfria’s customers are mainly Swedish municipalities. www.rostfria.com and www.indutrade.se
KSB AG
Took an 80% interest in the Danish pump manufacturer T Smedegaard A/S (see Pump Industry Analyst, March 2012). Established in 1942, Smedegaard makes circulating pumps used in heating systems. The pump company has two production sites, one in Copenhagen, Denmark and the other in Beinwil am See, Switzerland, as well as business locations in the UK and Sweden. Søren Smedegaard remains with the company and will be responsible for sales as one of the company’s two managing directors.
Now part of KSB’s building services pump offering, the Smedegaard pumps will be distributed through KSB’s sales organisation and should reach a broader customer base. www.ksb.com and www.smedegaard.dk
Dover Corp
Bought the Maag Group from Clyde Blowers Capital and CGS Management (see Pump Industry Analyst, March and February 2012). Maag manufactures gear pumps, pelletizers and filtration systems and had a turnover of around E130 million in 2011. The company employs more than 500 people and has operations in Switzerland, Germany, the US, Italy and China. Under Dover ownership, Maag has become part of the company’s Downers Grove, Illinois-based Pump Solutions Group (PSG).
With the disposal of Maag, entrepreneur Jim McColl has moved out of pumps, following the 2011 sale of ClydeUnion to SPX Corp. Meanwhile Pump Solutions Group continues to build and expand its portfolio, this time adding pump, pelletizing and filtration technologies. www.maag.com, www.clydeblowerscapital.com, www.cgs-management.com, www.pumpsg.com and www.dovercorporation.com
Franklin Electric Co Inc
Secured a majority stake in Pioneer Pump Holdings Inc (PPH), the parent company of Pioneer Pump Inc (PPI) based in Canby, Oregon and Pioneer Pump Ltd (PPL) headquartered in Rattlesden, UK (see Pump Industry Analyst, March 2012). Pioneer manufactures large, engine-driven centrifugal pumps used for dewatering in oil and gas, municipal, construction and mining applications. The pump group had consolidated net sales of approximately US$70 million in 2011.
Franklin Electric now has a 70% equity interest in PPH, having acquired a 35% stake in PPI in 2005. The company has agreed to buy the remaining minority shares of PPH in the first quarter of 2015. www.pioneerpump.com and www.franklin-electric.com
Second quarter 2012 Company
Activity
Comment
DXP Enterprises Inc
Added three pump distributors to its portfolio: Pump & Power Equipment Inc, Aledco Inc and Force Engineered Products Inc (see Pump Industry Analyst, April 2012). Pump & Power serves customers in the industrial and municipal markets, including food processing and production, engineering, energy and construction firms and water and wastewater treatment plants. Aledco and Force focus on the oil and gas, water and waste water treatment, pharmaceutical and general industrial markets.
Aledco has had recent success serving the Marcellus Shale development. DXP says that it is looking forward to leveraging its oil and gas expertise into this fast growing market opportunity. www.dxpe.com
Best PumpWorks
Purchased American Pump Technology Inc (see Pump Industry Analyst, May 2012).
Based in Shreveport, Louisiana, American Pump Technology provides repairs, complete rebuilds, hydraulic rerates and metallurgical upgrades on any make, model, or type of centrifugal pump, and for turnkey pump projects throughout the US. www.bestpumpworks.com
WPIL
Sealed the acquisition of PSV Holdings Ltd’s pump business, including APE Pumps, Mather + Platt, PSV Properties, PSV Services and PSV Zambia in a R54 million deal Inc (see Pump Industry Analyst, June 2012).
The acquisition of PSV’s pump business brings some strong brands to WPIL’s pump portfolio, expands the company’s global footprint and establishes a strong platform to service the African and Middle Eastern markets. www.wpil.co.in and www.psvholdings.com
Grundfos Group
Moved into membranes with the acquisition of Californian company Enaqua, a specialist in UV technology to disinfect water and in membranes for water purification (see Pump Industry Analyst, June 2012).
Enaqua supports the Grundfos plan to generate one third of its turnover from products other than pumps in 2025. www.grundfos.com and www.enaqua.com
January 2013
Pump Industry Analyst
13
Mergers & Acquisitions Review 2012
P
ump Industry Analyst looks back at the mergers and acquisitions that helped to reshape the pump industry during 2012. The deals completed in the first and second quarters of 2012 are listed here. Third and fourth quarter activity will be covered in the February 2013 issue of Pump Industry Analyst.
First quarter 2012 Company
Activity
Comment
Sulzer Ltd
Completed the acquisition of the privately-owned Spanish pump company Hidrotecar SA (see Pump Industry Analyst, January 2012 and November 2011). Based in Burgos, Hidrotecar had sales of E13 million in 2010 and employs about 50 people.
With the acquisition of Hidrotecar, Sulzer Pumps adds a new manufacturing, assembly and service facility mainly serving water customers in Europe, the Middle East and Africa. The acquisition also strengthens Sulzer Pumps’ aftermarket presence in the water sector. www.sulzer.com and www.hidrotecar.com
Hertz Equipment Rental Corp (HERC)
Acquired DW Pumps, a pump rental company based in Northern California (see Pump Industry Analyst, January 2012). DW Pumps specialises in providing pump solutions for industrial, municipal and construction customers on the US West coast. The pump rental company was founded in 2003 and is headquartered in San Leandro, California with a second location in Sacramento. The DW Pumps fleet includes large submersible pumps and diesel auto priming and high pressure pumps.
DW Pumps is expected to generate approximately US$6 million in new revenues for Hertz Equipment Rental Corp during 2012. www.hertzequip.com
Sany Heavy Industry Co Ltd
Announced the acquisition of Putzmeister Holding GmbH, the German concrete pump manufacturer (see Pump Industry Analyst, February 2012). Aichtal, Germany-headquartered Putzmeister specialises in construction machinery, particularly concrete pumps, for the building and mining industries, as well as for tunnel construction and large-scale industrial projects. Putzmeister has 3000 employees and generated revenues of about E570 million in 2011.
Chinese construction machinery company Sany, together with the Chinese Private Equity company CITIC PE Advisors (Hong Kong) Ltd as a minority shareholder, acquired 100% of the privately-owned Putzmeister in a deal that created a new global leader in concrete pumps. Putzmeister continues to operate with a high degree of independence in day-to-day management, with Norbert Scheuch remaining as CEO. Scheuch has also joined the Sany executive board. Aichtal is now Sany’s new world headquarters for concrete machinery outside of China. www.putzmeister.com and www.sanygroup.com
Interpump Group
Bought 53% of the share capital of Galtech SpA in a E3.3 million deal (see Pump Industry Analyst, February 2012). Galtech, which is headquartered in Reggio Emilia, specialises in the production and sale of pumps and gear motors, hydraulic distributors and accessories and components. Half of the E3.3 million purchase price was paid in cash and the other half in Interpump Group SpA shares.
The sellers have the right to sell the remaining 47% between the date on which the 2014 financial statements are approved and the date on which the 2025 financial statements are approved. www.galtech.it and www.interpumpgroup.it
HMS Group
Outlined plans to acquire an additional 11% of the share capital of Dimitrovgradkhimmash (DGHM) in a US$6.9 million deal (see Pump Industry Analyst, February 2012). The move increases HMS’s stake in DGHM to 51%. Founded in 1931, DGHM manufactures equipment, including pumps, for oil refineries, chemical, petrochemical and gas processing plants. For the FY2011, DGHM had revenues of US$53 million.
The acquisition of DGHM is consistent with HMS’s growth strategy and enhances the Russian company’s existing product offering. www.hms.ru
Colfax Corp
Transformed itself by acquiring Charter International plc in a US$2.4 billion cash
Charter’s Howden division, which focuses on air and
and stock deal (see Pump Industry Analyst, September 2011)
gas handling, will complement and extend Colfax’s existing fluid handling business, while Charter’s ESAB business, which provides welding and cutting solutions, will become the foundation of a new growth platform for Colfax. www.colfaxcorp.com
Wärtsilä Corp
12
Completed the acquisition of the engineering company Hamworthy plc (see Pump Industry Analyst, February 2012 and November 2011).
Pump Industry Analyst
The acquisition of Hamworthy is a major step in Wärtsilä’s strategy to strengthen its position as a total solutions provider. Hamworthy brings strong, complementary technologies to the Finnish power solutions company. www.wartsila.com and www.hamworthy.com
January 2013
MERGERS & ACQUISITIONS REVIEW Company
Activity
Comment
Indutrade AB
Acquired the Swedish company Rostfria VA-System i Storfors AB, a manufacturer of corrosion-resistant pump stations and pipe systems (see Pump Industry Analyst, February 2012)
With annual sales of SEK15 million, Rostfria’s customers are mainly Swedish municipalities. www.rostfria.com and www.indutrade.se
KSB AG
Took an 80% interest in the Danish pump manufacturer T Smedegaard A/S (see Pump Industry Analyst, March 2012). Established in 1942, Smedegaard makes circulating pumps used in heating systems. The pump company has two production sites, one in Copenhagen, Denmark and the other in Beinwil am See, Switzerland, as well as business locations in the UK and Sweden. Søren Smedegaard remains with the company and will be responsible for sales as one of the company’s two managing directors.
Now part of KSB’s building services pump offering, the Smedegaard pumps will be distributed through KSB’s sales organisation and should reach a broader customer base. www.ksb.com and www.smedegaard.dk
Dover Corp
Bought the Maag Group from Clyde Blowers Capital and CGS Management (see Pump Industry Analyst, March and February 2012). Maag manufactures gear pumps, pelletizers and filtration systems and had a turnover of around E130 million in 2011. The company employs more than 500 people and has operations in Switzerland, Germany, the US, Italy and China. Under Dover ownership, Maag has become part of the company’s Downers Grove, Illinois-based Pump Solutions Group (PSG).
With the disposal of Maag, entrepreneur Jim McColl has moved out of pumps, following the 2011 sale of ClydeUnion to SPX Corp. Meanwhile Pump Solutions Group continues to build and expand its portfolio, this time adding pump, pelletizing and filtration technologies. www.maag.com, www.clydeblowerscapital.com, www.cgs-management.com, www.pumpsg.com and www.dovercorporation.com
Franklin Electric Co Inc
Secured a majority stake in Pioneer Pump Holdings Inc (PPH), the parent company of Pioneer Pump Inc (PPI) based in Canby, Oregon and Pioneer Pump Ltd (PPL) headquartered in Rattlesden, UK (see Pump Industry Analyst, March 2012). Pioneer manufactures large, engine-driven centrifugal pumps used for dewatering in oil and gas, municipal, construction and mining applications. The pump group had consolidated net sales of approximately US$70 million in 2011.
Franklin Electric now has a 70% equity interest in PPH, having acquired a 35% stake in PPI in 2005. The company has agreed to buy the remaining minority shares of PPH in the first quarter of 2015. www.pioneerpump.com and www.franklin-electric.com
Second quarter 2012 Company
Activity
Comment
DXP Enterprises Inc
Added three pump distributors to its portfolio: Pump & Power Equipment Inc, Aledco Inc and Force Engineered Products Inc (see Pump Industry Analyst, April 2012). Pump & Power serves customers in the industrial and municipal markets, including food processing and production, engineering, energy and construction firms and water and wastewater treatment plants. Aledco and Force focus on the oil and gas, water and waste water treatment, pharmaceutical and general industrial markets.
Aledco has had recent success serving the Marcellus Shale development. DXP says that it is looking forward to leveraging its oil and gas expertise into this fast growing market opportunity. www.dxpe.com
Best PumpWorks
Purchased American Pump Technology Inc (see Pump Industry Analyst, May 2012).
Based in Shreveport, Louisiana, American Pump Technology provides repairs, complete rebuilds, hydraulic rerates and metallurgical upgrades on any make, model, or type of centrifugal pump, and for turnkey pump projects throughout the US. www.bestpumpworks.com
WPIL
Sealed the acquisition of PSV Holdings Ltd’s pump business, including APE Pumps, Mather + Platt, PSV Properties, PSV Services and PSV Zambia in a R54 million deal Inc (see Pump Industry Analyst, June 2012).
The acquisition of PSV’s pump business brings some strong brands to WPIL’s pump portfolio, expands the company’s global footprint and establishes a strong platform to service the African and Middle Eastern markets. www.wpil.co.in and www.psvholdings.com
Grundfos Group
Moved into membranes with the acquisition of Californian company Enaqua, a specialist in UV technology to disinfect water and in membranes for water purification (see Pump Industry Analyst, June 2012).
Enaqua supports the Grundfos plan to generate one third of its turnover from products other than pumps in 2025. www.grundfos.com and www.enaqua.com
January 2013
Pump Industry Analyst
13