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SKF to pay US$1.25bn for Kaydon Corp
filtration
industryANALYST ISSN 1365-6937 September 2013
www.filtrationindustryanalyst.com
SKF to pay US$1.25bn for Kaydon Corp
S
weden’s SKF is acquiring US-based Kaydon Corp in an all-cash transaction valued at US$1.25 billion, including US$95 million of net debt. Kaydon is a diversified industrial manufacturer of bearings, velocity control products and specialty products, including filters and filtrations systems. The company had sales of US$475 million in 2014 and more than 2100 employees. 62% of Kaydon’s sales are generated in North America, 24% in Europe, 12% in Asia Pacific and 2% in the rest of the world. Commenting on the acquisition of Kaydon, SKF president and CEO Tom Johnstone said: “The complementary nature of their products and technologies, their geographical and customer presence and their manufacturing footprint will enable us to even better serve our customers and distributors in the industrial market worldwide. In particular this acquisition, combined with our other activities,
investments and acquisitions in the last few years, shows our strong commitment to the North American market.” Kaydon chairman and CEO James O’Leary said: “Our board believes that the proposed transaction represents a compelling value for our shareholders. We believe that this transaction represents an excellent strategic fit for Kaydon that will allow our market leading businesses to accelerate their growth strategies by joining forces with SKF, a global industry leader.” For further information, visit www.skf.com and www. kaydon.com
COMMENT While this deal is mainly about bearings, SKF is also gaining a sizeable filtration business that includes filters and filter housings as well as gas-phase air filtration systems and replacement media. ■
Tetra Pak takes over Danish membrane filtration firm DSS Silkeborg
P
ackaging giant Tetra Pak has acquired DSS Silkeborg A/S, a Danish company specialising in dairy membrane filtration technology. DSS Silkeborg is a privately held company that develops membrane filtration systems for dairy applications, using reverse osmosis, nanofiltration, ultrafiltration and microfiltration technologies. “Becoming an integral part of Tetra Pak, a large multinational company focused on the dairy sector, offers DSS an opportunity for a new phase of growth in the global dairy industry,” said Niels Osterland, co-founder and managing director of DSS Silkeborg. “The acquisition of DSS adds to Tetra Pak’s expertise in membrane filtration
technology, enabling us to provide our customers with an even wider range of processing solutions for dairy, cheese and whey as well as other beverages and prepared foods,” said Tim High, executive vice president Processing Systems, Tetra Pak. DSS will remain in Silkeborg, Denmark with its current management team as part of Tetra Pak’s Cheese and Powder business unit. This is Tetra Pak’s second filtration acquisition in the last nine months. Late last year, Tetra Pak acquired Minneapolis, USA-based Filtration Engineering Co (see Filtration Industry Analyst, January 2013). For further information, visit www.tetrapak.com and www.dss.eu
Contents Company Profile Entegris Modern Water
7 8
Company Watch Andritz Cummins Hyflux Outotec SPX Xylem
9 9 10 10 11 11
Diary
15
Dividends
5
Exchange Rates
16
Financial Calendar
14
In Brief New Product Developments
4 14
News SKF to pay US$1.25bn for Kaydon Corp Tetra Pak takes over Danish membrane filtration firm DSS Silkeborg Blackstone’s PGI makes an offer for Fiberweb METAWATER and RWB strengthen partnership Xylem CEO steps down RGF agrees to buy AFL Industries Growth slows at Mann+Hummel Pentair plans manufacturing JV in Saudi Arabia Ahlstrom lowers 2013 outlook Porvair ahead of management expectations Pervatech secures funding for expansion World Water Works partners with Israel’s Aquanos Energy Nijhuis Water Technology acquires H2OK Water and Energy BluMetric to represent LG Water’s membranes in Canada IGS Group expands Houston HQ Norris Production Solutions purchases SPIRIT Grundfos half-year turnover up 3% Lanxess completes HQ relocation Eriez buys UK coolant filtration systems supplier Centriforce Equity fund invests in Hayward Gordon
1
16 16
Orders & Contracts
13
People & Appointments
12
Stock Watch
15
1 2 2 2 3 3 3 4 4 4 5 5 6 6 5 6 6
ISSN 1365-6937/13 © 2013 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.
industryANALYST ISSN 1365-6937 September 2013
www.filtrationindustryanalyst.com
SKF to pay US$1.25bn for Kaydon Corp
S
weden’s SKF is acquiring US-based Kaydon Corp in an all-cash transaction valued at US$1.25 billion, including US$95 million of net debt. Kaydon is a diversified industrial manufacturer of bearings, velocity control products and specialty products, including filters and filtrations systems. The company had sales of US$475 million in 2014 and more than 2100 employees. 62% of Kaydon’s sales are generated in North America, 24% in Europe, 12% in Asia Pacific and 2% in the rest of the world. Commenting on the acquisition of Kaydon, SKF president and CEO Tom Johnstone said: “The complementary nature of their products and technologies, their geographical and customer presence and their manufacturing footprint will enable us to even better serve our customers and distributors in the industrial market worldwide. In particular this acquisition, combined with our other activities,
investments and acquisitions in the last few years, shows our strong commitment to the North American market.” Kaydon chairman and CEO James O’Leary said: “Our board believes that the proposed transaction represents a compelling value for our shareholders. We believe that this transaction represents an excellent strategic fit for Kaydon that will allow our market leading businesses to accelerate their growth strategies by joining forces with SKF, a global industry leader.” For further information, visit www.skf.com and www. kaydon.com
COMMENT While this deal is mainly about bearings, SKF is also gaining a sizeable filtration business that includes filters and filter housings as well as gas-phase air filtration systems and replacement media. ■
Tetra Pak takes over Danish membrane filtration firm DSS Silkeborg
P
ackaging giant Tetra Pak has acquired DSS Silkeborg A/S, a Danish company specialising in dairy membrane filtration technology. DSS Silkeborg is a privately held company that develops membrane filtration systems for dairy applications, using reverse osmosis, nanofiltration, ultrafiltration and microfiltration technologies. “Becoming an integral part of Tetra Pak, a large multinational company focused on the dairy sector, offers DSS an opportunity for a new phase of growth in the global dairy industry,” said Niels Osterland, co-founder and managing director of DSS Silkeborg. “The acquisition of DSS adds to Tetra Pak’s expertise in membrane filtration
technology, enabling us to provide our customers with an even wider range of processing solutions for dairy, cheese and whey as well as other beverages and prepared foods,” said Tim High, executive vice president Processing Systems, Tetra Pak. DSS will remain in Silkeborg, Denmark with its current management team as part of Tetra Pak’s Cheese and Powder business unit. This is Tetra Pak’s second filtration acquisition in the last nine months. Late last year, Tetra Pak acquired Minneapolis, USA-based Filtration Engineering Co (see Filtration Industry Analyst, January 2013). For further information, visit www.tetrapak.com and www.dss.eu
Contents Company Profile Entegris Modern Water
7 8
Company Watch Andritz Cummins Hyflux Outotec SPX Xylem
9 9 10 10 11 11
Diary
15
Dividends
5
Exchange Rates
16
Financial Calendar
14
In Brief New Product Developments
4 14
News SKF to pay US$1.25bn for Kaydon Corp Tetra Pak takes over Danish membrane filtration firm DSS Silkeborg Blackstone’s PGI makes an offer for Fiberweb METAWATER and RWB strengthen partnership Xylem CEO steps down RGF agrees to buy AFL Industries Growth slows at Mann+Hummel Pentair plans manufacturing JV in Saudi Arabia Ahlstrom lowers 2013 outlook Porvair ahead of management expectations Pervatech secures funding for expansion World Water Works partners with Israel’s Aquanos Energy Nijhuis Water Technology acquires H2OK Water and Energy BluMetric to represent LG Water’s membranes in Canada IGS Group expands Houston HQ Norris Production Solutions purchases SPIRIT Grundfos half-year turnover up 3% Lanxess completes HQ relocation Eriez buys UK coolant filtration systems supplier Centriforce Equity fund invests in Hayward Gordon
1
16 16
Orders & Contracts
13
People & Appointments
12
Stock Watch
15
1 2 2 2 3 3 3 4 4 4 5 5 6 6 5 6 6
ISSN 1365-6937/13 © 2013 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.