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Us consumer demands quality water
October 1999
FIBERMARK ENHANCES NONWOVEN RESOURCES
Filtration Industry Analyst
EEC NAMES SECOND CHINESE DEAL
Air pollution control provider Environmental EleFibre based materials proCorp (EEC) has ducer FiberMark Inc is to ments signed a technology transfer acquire nonwoven manufacand licensing agreement with turer Papierfabrik Labnstein China’s largest specialised GmbH, in what is the comfabric filter system producer, pany’s fifth acquisition since Wujiang Dust Collector Fac1994. to market The purchase price of tory (WDCF), ~~$22 million has been EEC fabric filter technology. This agreement - EEC’s financed with US$7 million of second in China - will expand cash reserves and US$l5 millEEC’s presence in the rapidly ion in German bank debt. The dollar bank debt amortizes over six emerging multi-billion years and carries a fixed intermarket for air Pollution control products and services est rate of 6.5% in China. The Global EnvironThe acquisition is expected mental Facility, with the to provide ongoing annual World Bank acting as trustee earnings accretion of around and China’s State Machinery US$O.l5 per share. However, as a result of the typical sea- Industry Bureau as the executhe sonal sales slowdown in , tive agency, facilitated Europe in the second half of deal. The agreement, which the year, the anticipated effect has been approved by the government and of the Lahnstein acquisition is Chinese the World Bank, will allow unlikely to have a significant positive impact on FiberMark’s I WDCF to license EEC’s pulsejet fabric filter technology in fiscal 1999 results. FiberMark says that it China. intends to broaden the reach of Lahnstein beyond its current PEERLESS SEES European base and foresees 1999 REVENUES cross selling opportunities in FALL 5.5% the US and potentially worldwide. Papierfabrik Lahnstein Filter maker Peerless Manuwill operate as FiberMark facturing Co’s fiscal 1999 Lahnstein. revenues have fallen to US$41.1 million from US CONSUMER i US$43.5 million in 1998. The company also witDEMANDS nessed a substantial drop in net QUALITY WATER earnings down 24% to US$1.9 million from US$2.5 million in Beginning in the first quarter nf 2000, GE Appliances fiscal 1998. The company cites vi11 provide a full line of accruals it has taken for a potential bad debt on a venture SE SmartWater’“’ filtration )roducts to over 859 home in Spain and lower than lepot stores located throughexpected profit margins on a project shipped by its subutt the USA and Canada. Addressing the issue that sidiary Peerless Europe Ltd, ‘0% of Americans are con- for a poor fourth quarter per:erned about the quality of formance resulting in the fall in hinking water, GE says its earnings. The company is also imartwater filtration systems intent on holding out against &fer consumers quality water Ceco Environmental Cot-p’s ,t a fraction of the cost of pre- unsolicited US$15 per share nium bottled water. cash bid and insists that it is
not for Industry
sale (see Filtration Analyst, September
1999). l
SETTLEMENT SEES PUROFLOW EXPAND BOARD Puroflow Inc has entered into a settlement agreement with Steel Partners and its affiliates under which Steel Partners has agreed to terminate its pending proxy contest in exchange for board representation. Following the agreement Puroflow has expanded its current board from four to seven members and has appointed three representatives from Steel Partners to fill the three vacancies. At the annual meeting of stockholders to be held 21 October 1999, the size of the board will be reduced to five. Puroflow will nominate three representatives and Steel Partners will nominate two.
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CUMMINS COMBINES UNITS /Cummins
Engine Co Inc is its automotive :and industrial business units i into a single engine business 1unit. Tim Solso, Cummins presI[dent and chief operating offi(:er, says that combining the I:wo units will allow Cummins t:o better compete in a rapidly ,:hanging world. “We reorganIsed into four business units iIn 1996 to focus on being (:ustomer-led, results driven iutd to make better use of taur assets. While those organiS ational objectives are still v,alid, we must continue to change to meet the challenges Plosed by the consolidation aIf our industry. Reorganising il nto three business units e ngines, power generation a nd filtration - enables us tc3 deal more effectively with 0iur customers and competitlors, many of whom are in b10th the automotive and industirial sectors.” ,combining
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eFiltration.com is a new business to business online source for industrial and commercial filtration products. The site uses the convenience of the Internet to offer easy online ordering of a wide range of filter products and services, 24 hour customer service, instant order tracking and technical support. eFiltration.com can be reached at www.efiltration.com. Medical device manufacturer Minntech Corp has received clearance from the US Food and Drug administration to market its RenaclearrM dialyser cleaning system. This is claimed to be the first dedicated automated system to remove residual blood and organic debris from hard-to-clean dialysers before reprocessing. Leading filtration equipment manufacturer Osmonits has produced a six page brochure highlighting its seawater reverse osmosis systems for potable water and industrial applications. The board of directors of Clarcor Inc has declared an increase in the regular quarterly stock dividend from US$O.I 125 per share to US$O. 1150. This increase raises the annual rate from US$O.45 to US$O.46. The dividend is payable on 29 October 1999 to shareholders of record on 15 October 1999. As from 1 October 1999 GEA AG will become part of German company Metallgesellschaft Group (MG) as half of MG’s engineering division. Last month the two companies approved a control and profit transfer agreement which means that from 27 September 1999 GEA shareholders will be able to exchange ordinary and preference shares for shares in MG.
FIBERMARK ENHANCES NONWOVEN RESOURCES
Filtration Industry Analyst
EEC NAMES SECOND CHINESE DEAL
Air pollution control provider Environmental EleFibre based materials proCorp (EEC) has ducer FiberMark Inc is to ments signed a technology transfer acquire nonwoven manufacand licensing agreement with turer Papierfabrik Labnstein China’s largest specialised GmbH, in what is the comfabric filter system producer, pany’s fifth acquisition since Wujiang Dust Collector Fac1994. to market The purchase price of tory (WDCF), ~~$22 million has been EEC fabric filter technology. This agreement - EEC’s financed with US$7 million of second in China - will expand cash reserves and US$l5 millEEC’s presence in the rapidly ion in German bank debt. The dollar bank debt amortizes over six emerging multi-billion years and carries a fixed intermarket for air Pollution control products and services est rate of 6.5% in China. The Global EnvironThe acquisition is expected mental Facility, with the to provide ongoing annual World Bank acting as trustee earnings accretion of around and China’s State Machinery US$O.l5 per share. However, as a result of the typical sea- Industry Bureau as the executhe sonal sales slowdown in , tive agency, facilitated Europe in the second half of deal. The agreement, which the year, the anticipated effect has been approved by the government and of the Lahnstein acquisition is Chinese the World Bank, will allow unlikely to have a significant positive impact on FiberMark’s I WDCF to license EEC’s pulsejet fabric filter technology in fiscal 1999 results. FiberMark says that it China. intends to broaden the reach of Lahnstein beyond its current PEERLESS SEES European base and foresees 1999 REVENUES cross selling opportunities in FALL 5.5% the US and potentially worldwide. Papierfabrik Lahnstein Filter maker Peerless Manuwill operate as FiberMark facturing Co’s fiscal 1999 Lahnstein. revenues have fallen to US$41.1 million from US CONSUMER i US$43.5 million in 1998. The company also witDEMANDS nessed a substantial drop in net QUALITY WATER earnings down 24% to US$1.9 million from US$2.5 million in Beginning in the first quarter nf 2000, GE Appliances fiscal 1998. The company cites vi11 provide a full line of accruals it has taken for a potential bad debt on a venture SE SmartWater’“’ filtration )roducts to over 859 home in Spain and lower than lepot stores located throughexpected profit margins on a project shipped by its subutt the USA and Canada. Addressing the issue that sidiary Peerless Europe Ltd, ‘0% of Americans are con- for a poor fourth quarter per:erned about the quality of formance resulting in the fall in hinking water, GE says its earnings. The company is also imartwater filtration systems intent on holding out against &fer consumers quality water Ceco Environmental Cot-p’s ,t a fraction of the cost of pre- unsolicited US$15 per share nium bottled water. cash bid and insists that it is
not for Industry
sale (see Filtration Analyst, September
1999). l
SETTLEMENT SEES PUROFLOW EXPAND BOARD Puroflow Inc has entered into a settlement agreement with Steel Partners and its affiliates under which Steel Partners has agreed to terminate its pending proxy contest in exchange for board representation. Following the agreement Puroflow has expanded its current board from four to seven members and has appointed three representatives from Steel Partners to fill the three vacancies. At the annual meeting of stockholders to be held 21 October 1999, the size of the board will be reduced to five. Puroflow will nominate three representatives and Steel Partners will nominate two.
l
l
CUMMINS COMBINES UNITS /Cummins
Engine Co Inc is its automotive :and industrial business units i into a single engine business 1unit. Tim Solso, Cummins presI[dent and chief operating offi(:er, says that combining the I:wo units will allow Cummins t:o better compete in a rapidly ,:hanging world. “We reorganIsed into four business units iIn 1996 to focus on being (:ustomer-led, results driven iutd to make better use of taur assets. While those organiS ational objectives are still v,alid, we must continue to change to meet the challenges Plosed by the consolidation aIf our industry. Reorganising il nto three business units e ngines, power generation a nd filtration - enables us tc3 deal more effectively with 0iur customers and competitlors, many of whom are in b10th the automotive and industirial sectors.” ,combining
'
l
l
eFiltration.com is a new business to business online source for industrial and commercial filtration products. The site uses the convenience of the Internet to offer easy online ordering of a wide range of filter products and services, 24 hour customer service, instant order tracking and technical support. eFiltration.com can be reached at www.efiltration.com. Medical device manufacturer Minntech Corp has received clearance from the US Food and Drug administration to market its RenaclearrM dialyser cleaning system. This is claimed to be the first dedicated automated system to remove residual blood and organic debris from hard-to-clean dialysers before reprocessing. Leading filtration equipment manufacturer Osmonits has produced a six page brochure highlighting its seawater reverse osmosis systems for potable water and industrial applications. The board of directors of Clarcor Inc has declared an increase in the regular quarterly stock dividend from US$O.I 125 per share to US$O. 1150. This increase raises the annual rate from US$O.45 to US$O.46. The dividend is payable on 29 October 1999 to shareholders of record on 15 October 1999. As from 1 October 1999 GEA AG will become part of German company Metallgesellschaft Group (MG) as half of MG’s engineering division. Last month the two companies approved a control and profit transfer agreement which means that from 27 September 1999 GEA shareholders will be able to exchange ordinary and preference shares for shares in MG.