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TI completes Sealol acquisition and sale of Belfab business
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Pump Industry Analyst
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IDEX ANTICIPATES RECORD SALES AND EARNINGS IN 1998 At the company's annual shareholder meeting, Donald N Boyce, chairman of the board and chief executive officer of Idex Corporation, said that Idex's 1997 financial performance was excellent, with records again being established in sales, net income and earnings per share. Building on a strong base, added Boyce, they expected 1998 to be "another record year". Earlier this year, Idex reported a 16 per cent increase in sales from continuing operations and a 20 per cent increase in net income from continuing operations for the year ended 31 December 1997. Diluted earnings per share from continuing operations increased to US$1.78 from the US$1.49 recorded in 1996, a 19 per cent improvement. Boyce said: "Acquisitions contributed significantly to the sales and earnings improvement. International expansion has been a major emphasis for the company, and sales outside the US represented 44 per cent of total shipments in 1997. This was up from 43 per cent in 1996 and from 24 per cent when Idex was formed in 1988. Including results of the Strippit and Virbratech businesses, which the company previously announced it intends to divest, and whose results are considered discontinued operations, the year-over-year improvement in sales was 13 per cent, with net income up 17 per cent and diluted earnings per share up 15 per cent. Boyce noted that with the 1997 results, including the discontinued operations, Idex has achieved a 21 per cent compound annual rate of growth in
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diluted earnings per share since its formation and has recorded an uninterrupted string of improvements in net income before unusual items. He said ldex operated with a small backlog of about 1-1V2 months' sales and was therefore unable to project longterm results. Nevertheless, the company again expects to set records in 1998 sales, net income and earnings per share. 1998 results will be helped by modest economic growth in both US and world markets served by the company, a focus on further international growth, the inclusion of Gast Manufacturing and Knight Equipment, use of the company's strong cash flow to cut debt, and opportunities for further improvement in operating margins in recently acquired businesses.
HAYWARD TYLER BUYS INTO US MARKET Hayward Tyler Group has acquired Georgia Pacific Pump of Vienna, Georgia, USA. A family run business, Georgia Pacific Pump has been manufacturing a range of submersible and centrifugal pumps and ancillary pumping equipment, since 1954. Hayward Tyler's managing director Bob Alexander said they were delighted with the acquisition. He explained that his company had been searching for a suitable acquisition in the southern US that would have the ability to handle submersible technology transfer and that finding Georgia Pacific Pump fulfilled all their ideals. The acquisition will allow Hayward Tyler to transfer its submersible technology to the US, while at the same time extend the company's existing range. Hayward Tyler plans further acquisitions to support its international customer base.
TI COMPLETES SEALOL ACQUISITION AND SALE OF BELFAB BUSINESS John Crane's parent company, TI Group, has completed its US$100 million acquisition of the Sealol Industrial Division from US-based EG&G Inc. As part of the same transaction, TI has also completed the sale of its John Crane Belfab business to EG&G for US$45 million. TI originally announced the acquisition and sale late last year (see Pump lndustryAnalyst,January 1998). Both deals were then subject to regulatory and other conditions. The Belfab purchase positions EG&G as a major supplier to the semiconductor manufacturing industry. Belfab bellows also have applications in aerospace and biomedical markets. Belfab had sales of US$30 million in 1997. The Sealol Industrial Division, which had 1997 sales of US$88 million, manufactures mechanical seals used by the chemical, petrochemical and other industries. Sealol is a leading manufacturer of welded metal bellows mechanical seals with a primary focus on the high temperature segment of the refining and petroleum industries, which are complementary to the John Crane product offering. TI Group, the UK-headquartered global specialized engineering company, employs 25 500 people at more than 350 manufacturing and customer facilities located in 46 countries, and in 1997 had sales of £1.9 billion. EG&G Inc is a global technology company that provides complete systems, as well as components, to automotive, medical, aerospace, photography and other industries. Based in Wellesley, Massachusetts, EG&G has annual sales of more than US$1.4 billion, and more than 14 000 employees worldwide.
May 1998
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Pump Industry Analyst
003448!-t8
IDEX ANTICIPATES RECORD SALES AND EARNINGS IN 1998 At the company's annual shareholder meeting, Donald N Boyce, chairman of the board and chief executive officer of Idex Corporation, said that Idex's 1997 financial performance was excellent, with records again being established in sales, net income and earnings per share. Building on a strong base, added Boyce, they expected 1998 to be "another record year". Earlier this year, Idex reported a 16 per cent increase in sales from continuing operations and a 20 per cent increase in net income from continuing operations for the year ended 31 December 1997. Diluted earnings per share from continuing operations increased to US$1.78 from the US$1.49 recorded in 1996, a 19 per cent improvement. Boyce said: "Acquisitions contributed significantly to the sales and earnings improvement. International expansion has been a major emphasis for the company, and sales outside the US represented 44 per cent of total shipments in 1997. This was up from 43 per cent in 1996 and from 24 per cent when Idex was formed in 1988. Including results of the Strippit and Virbratech businesses, which the company previously announced it intends to divest, and whose results are considered discontinued operations, the year-over-year improvement in sales was 13 per cent, with net income up 17 per cent and diluted earnings per share up 15 per cent. Boyce noted that with the 1997 results, including the discontinued operations, Idex has achieved a 21 per cent compound annual rate of growth in
16
diluted earnings per share since its formation and has recorded an uninterrupted string of improvements in net income before unusual items. He said ldex operated with a small backlog of about 1-1V2 months' sales and was therefore unable to project longterm results. Nevertheless, the company again expects to set records in 1998 sales, net income and earnings per share. 1998 results will be helped by modest economic growth in both US and world markets served by the company, a focus on further international growth, the inclusion of Gast Manufacturing and Knight Equipment, use of the company's strong cash flow to cut debt, and opportunities for further improvement in operating margins in recently acquired businesses.
HAYWARD TYLER BUYS INTO US MARKET Hayward Tyler Group has acquired Georgia Pacific Pump of Vienna, Georgia, USA. A family run business, Georgia Pacific Pump has been manufacturing a range of submersible and centrifugal pumps and ancillary pumping equipment, since 1954. Hayward Tyler's managing director Bob Alexander said they were delighted with the acquisition. He explained that his company had been searching for a suitable acquisition in the southern US that would have the ability to handle submersible technology transfer and that finding Georgia Pacific Pump fulfilled all their ideals. The acquisition will allow Hayward Tyler to transfer its submersible technology to the US, while at the same time extend the company's existing range. Hayward Tyler plans further acquisitions to support its international customer base.
TI COMPLETES SEALOL ACQUISITION AND SALE OF BELFAB BUSINESS John Crane's parent company, TI Group, has completed its US$100 million acquisition of the Sealol Industrial Division from US-based EG&G Inc. As part of the same transaction, TI has also completed the sale of its John Crane Belfab business to EG&G for US$45 million. TI originally announced the acquisition and sale late last year (see Pump lndustryAnalyst,January 1998). Both deals were then subject to regulatory and other conditions. The Belfab purchase positions EG&G as a major supplier to the semiconductor manufacturing industry. Belfab bellows also have applications in aerospace and biomedical markets. Belfab had sales of US$30 million in 1997. The Sealol Industrial Division, which had 1997 sales of US$88 million, manufactures mechanical seals used by the chemical, petrochemical and other industries. Sealol is a leading manufacturer of welded metal bellows mechanical seals with a primary focus on the high temperature segment of the refining and petroleum industries, which are complementary to the John Crane product offering. TI Group, the UK-headquartered global specialized engineering company, employs 25 500 people at more than 350 manufacturing and customer facilities located in 46 countries, and in 1997 had sales of £1.9 billion. EG&G Inc is a global technology company that provides complete systems, as well as components, to automotive, medical, aerospace, photography and other industries. Based in Wellesley, Massachusetts, EG&G has annual sales of more than US$1.4 billion, and more than 14 000 employees worldwide.
May 1998