- Email: [email protected]
SULZER PUMPS ORDER INTAKE SLOWS
August 2002
NEWS
Pump Industry Analyst
IDEX TO ACQUIRE RHEODYNE
SULZER PUMPS ORDER INTAKE SLOWS
Idex Corp has entered into a definitive agreement to acquire Rheodyne, the Rohnert Park, Californiabased manufacturer of injectors, valves, fittings and accessories for the analytical instrumentation market. Rheodyne’s products are used by manufacturers of high performance liquid chromatography equipment. The company, which has annual sales of approximately US$23 million, becomes Idex’s 12th stand-alone business and will be operated as part of its Pump Products Group. Terms of this cash transaction were not disclosed. Idex CEO Dennis Williams said Rheodyne fitted his company’s growth strategy exceptionally well. “The combination of Micropump, Ismatec and Rheodyne will allow us to strengthen our position in the higher growth analytical instrument business, and will help us develop new products to serve this market.” Rheodyne president and CEO James Noonan will remain active with the business until a successor is named. Meanwhile Idex is positioning itself for further acquisition activity by using the US$50.9 million it received in net proceeds from the recent sale of 1.5 million primary shares, to repay debt under its revolving credit facility. This has increased the amount available for borrowing under the facility, which Idex intends to use for general corporate purposes, including acquisitions. Idex’s public offering of 5.75 million shares of common stock at US$36.00 per share (see Pump Industry Analyst, June 2002), saw Idex sell 1.5 million primary shares while Idex Associates LP and KKR Associates LP sold 4.25 million secondary shares.
Sulzer Pumps’ SFr528 million order intake for the first six months of this year practically matched last year’s SFr529 million performance. While order activity in the oil and gas segment was strong, demand from the petrochemical and power generation markets remained subdued but order intake from the pulp and paper industry recovered to some extent. Given the ongoing recession in a number of its core markets, Sulzer Pumps says it expects a slight decline in demand for the second half of this year. Overall consolidated order intake by Sulzer Corp for the first half of 2002 totalled SFr1039 million, down 3% on a year ago, reflecting ongoing insecurity in many of the group’s market areas. Sulzer does not expect this to change significantly before the end of the year and says order intake for 2002 as a whole is likely to be level with last year.
16
CARDO DIVESTS RAIL BUSINESS Cardo has entered into an agreement to sell its Rail business area to Vestar Capital Partners, for approximately SKr2 billion free from debt, generating a taxfree capital gain of approximately SKr345 million (see Pump Industry Analyst, May 2002). “Through the sale of Rail, we are gaining a strong balance sheet and freeing up capital for an expansion in our other business areas, Door and Pump. Both operate in sectors with considerable aftermarket potential and good growth opportunities via acquisitions,” said Cardo’s president and CEO Kjell Svensson. After the
sale, the group will have net liquid funds of approximately SKr500 million and an equity ratio of slightly more than 60%.
JOHNSON PUMP IN NEW SHARE ISSUE The board of directors of Sweden’s Industriförvaltnings AB Johnson Pump is planning a new SKr69 million share issue with preferential rights for existing shareholders. Shareholders can subscribe for one new share at the issue price of SKr50 per share for every four shares currently held. The new issue will increase the share capital by a maximum of SKr13.8 million. A decision on the new issue, which already has approval from 47% of the shareholders including Investment AB Öresund, the Mats Qviberg family, Per-Uno Sandberg, the Jonas Wahlström family and Lennart Wiklund, will be made at an extraordinary general meeting to be held on 19 August 2002. When AB Johnson Pump (formerly TMT One) merged with Johnson Pump AB earlier this year, many Johnson Pump AB shareholders chose the cash, rather than the share alternative (see Pump Industry Analyst, February 2002). As a result the consolidated group did not reach its planned equity ratio. Johnson Pump says the new issue is designed to improve the group’s solidity, increase the liquid ratio, prepare the company for expansion through acquisitions and improve the share liquidity by broadening the ownership of the company. The board of directors also plans to take the decision to change the name of the company to Johnson Pump AB at the August meeting.
Editor Roisin Reidy Elsevier Advanced Technology PO Box 150 Kidlington Oxford OX5 1AS United Kingdom Tel: +44 (0)1865 843695 Fax: +44 (0)1865 843971 E-mail: [email protected] Web: www.worldpumps.com/pia Permissions may be sought directly from Elsevier Science Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK; phone: (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: permissions @elsevier.co.uk. You may also contact Rights & Permissions directly through Elsevier’s home page (http://www.elsevier.nl), selecting first ‘Customer Support’, then ‘General Information’, then Permissions Query Form’. In the USA, users may clear permissions and make payments through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; phone: (978) 7508400, fax: (978) 7504744, and in the UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS), 90 Tottenham Court Road, London W1P 0LP, UK; phone: (+44) 207 436 5931; fax: (+44) 207 436 3986. Other countries may have a local reprographic rights agency for payments. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the publisher is required for resale or distribution outside the institution. Permission of the publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Contact the publisher at the address indicated. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. Address permissions requests to: Elsevier Science Rights & Permissions Department, at the mail, fax and e-mail addresses noted above. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made. Although all advertising material is expected to conform to ethical (medical) standards, inclusion in this publication does not constitute a guarantee or endorsement of the quality or value of such product or of the claims made of it by its manufacturer.
02167 Printed by Mayfield Press (Oxford) Limited, UK.
NEWS
Pump Industry Analyst
IDEX TO ACQUIRE RHEODYNE
SULZER PUMPS ORDER INTAKE SLOWS
Idex Corp has entered into a definitive agreement to acquire Rheodyne, the Rohnert Park, Californiabased manufacturer of injectors, valves, fittings and accessories for the analytical instrumentation market. Rheodyne’s products are used by manufacturers of high performance liquid chromatography equipment. The company, which has annual sales of approximately US$23 million, becomes Idex’s 12th stand-alone business and will be operated as part of its Pump Products Group. Terms of this cash transaction were not disclosed. Idex CEO Dennis Williams said Rheodyne fitted his company’s growth strategy exceptionally well. “The combination of Micropump, Ismatec and Rheodyne will allow us to strengthen our position in the higher growth analytical instrument business, and will help us develop new products to serve this market.” Rheodyne president and CEO James Noonan will remain active with the business until a successor is named. Meanwhile Idex is positioning itself for further acquisition activity by using the US$50.9 million it received in net proceeds from the recent sale of 1.5 million primary shares, to repay debt under its revolving credit facility. This has increased the amount available for borrowing under the facility, which Idex intends to use for general corporate purposes, including acquisitions. Idex’s public offering of 5.75 million shares of common stock at US$36.00 per share (see Pump Industry Analyst, June 2002), saw Idex sell 1.5 million primary shares while Idex Associates LP and KKR Associates LP sold 4.25 million secondary shares.
Sulzer Pumps’ SFr528 million order intake for the first six months of this year practically matched last year’s SFr529 million performance. While order activity in the oil and gas segment was strong, demand from the petrochemical and power generation markets remained subdued but order intake from the pulp and paper industry recovered to some extent. Given the ongoing recession in a number of its core markets, Sulzer Pumps says it expects a slight decline in demand for the second half of this year. Overall consolidated order intake by Sulzer Corp for the first half of 2002 totalled SFr1039 million, down 3% on a year ago, reflecting ongoing insecurity in many of the group’s market areas. Sulzer does not expect this to change significantly before the end of the year and says order intake for 2002 as a whole is likely to be level with last year.
16
CARDO DIVESTS RAIL BUSINESS Cardo has entered into an agreement to sell its Rail business area to Vestar Capital Partners, for approximately SKr2 billion free from debt, generating a taxfree capital gain of approximately SKr345 million (see Pump Industry Analyst, May 2002). “Through the sale of Rail, we are gaining a strong balance sheet and freeing up capital for an expansion in our other business areas, Door and Pump. Both operate in sectors with considerable aftermarket potential and good growth opportunities via acquisitions,” said Cardo’s president and CEO Kjell Svensson. After the
sale, the group will have net liquid funds of approximately SKr500 million and an equity ratio of slightly more than 60%.
JOHNSON PUMP IN NEW SHARE ISSUE The board of directors of Sweden’s Industriförvaltnings AB Johnson Pump is planning a new SKr69 million share issue with preferential rights for existing shareholders. Shareholders can subscribe for one new share at the issue price of SKr50 per share for every four shares currently held. The new issue will increase the share capital by a maximum of SKr13.8 million. A decision on the new issue, which already has approval from 47% of the shareholders including Investment AB Öresund, the Mats Qviberg family, Per-Uno Sandberg, the Jonas Wahlström family and Lennart Wiklund, will be made at an extraordinary general meeting to be held on 19 August 2002. When AB Johnson Pump (formerly TMT One) merged with Johnson Pump AB earlier this year, many Johnson Pump AB shareholders chose the cash, rather than the share alternative (see Pump Industry Analyst, February 2002). As a result the consolidated group did not reach its planned equity ratio. Johnson Pump says the new issue is designed to improve the group’s solidity, increase the liquid ratio, prepare the company for expansion through acquisitions and improve the share liquidity by broadening the ownership of the company. The board of directors also plans to take the decision to change the name of the company to Johnson Pump AB at the August meeting.
Editor Roisin Reidy Elsevier Advanced Technology PO Box 150 Kidlington Oxford OX5 1AS United Kingdom Tel: +44 (0)1865 843695 Fax: +44 (0)1865 843971 E-mail: [email protected] Web: www.worldpumps.com/pia Permissions may be sought directly from Elsevier Science Rights & Permissions Department, PO Box 800, Oxford OX5 1DX, UK; phone: (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: permissions @elsevier.co.uk. You may also contact Rights & Permissions directly through Elsevier’s home page (http://www.elsevier.nl), selecting first ‘Customer Support’, then ‘General Information’, then Permissions Query Form’. In the USA, users may clear permissions and make payments through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; phone: (978) 7508400, fax: (978) 7504744, and in the UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS), 90 Tottenham Court Road, London W1P 0LP, UK; phone: (+44) 207 436 5931; fax: (+44) 207 436 3986. Other countries may have a local reprographic rights agency for payments. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the publisher is required for resale or distribution outside the institution. Permission of the publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Contact the publisher at the address indicated. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. Address permissions requests to: Elsevier Science Rights & Permissions Department, at the mail, fax and e-mail addresses noted above. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made. Although all advertising material is expected to conform to ethical (medical) standards, inclusion in this publication does not constitute a guarantee or endorsement of the quality or value of such product or of the claims made of it by its manufacturer.
02167 Printed by Mayfield Press (Oxford) Limited, UK.