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Waterlink revises 2Q outlook
May 1998
Filtration Industry Analyst
BBA TO BUY VERATEC IBA Group plc has signed a eiinitive agreement to purhase the assets of Veratec, Paper’s nternational Jonwovens Division. The purchase price, subect to certain post closing djustments, is approximately JS$290 million in cash. The leal, which has been approved I both companies’ boards of rectors, awaits approval by e appropriate governmental Iencies. David Miles, president of BA Nonwovens Division, rid that as Veratec has subantial business in the indus,ial, specialty and medical 1 I markets, the combination rould provide significantly lore balance to BBA’s North I ,merican nonwovens busi. ess. Veratec had 1997 sales OIF pproximately US$250 mil on. The company has manu acturing plants in Georgia ’ Massachusetts, Pennsylvania 7 ;outh Carolina, Wisconsin 1 Mexico and Canada.
WATERLINK REVISES 2Q OUTLOOK Waterlink Inc has warnet d ;hat although revenues fo r the 2nd quarter of its fists 11 year ending 30 Septembe r 1998 will produce signiiicar 1t increases over the prior yea lr quarter, revenues and eat-rIings will not meet markt :t expectations. cite :d company The delayed orders at its Biocle; ar subsidiary as the primary falCtor, adding that economic ar id competitive pressures relatf :d to its Nordic Water Produc ts Group have resulted in low er than expected results. Waterlink explained that it can experience quarterly flu Ctuations in operating resul ts due to the contractual nature of
ts businesses. As a result, the lelay in obtaining several large mrchase orders within one narket segment at its Bioclear subsidiary will significantly mpact quarterly results. The ielays were not an ongoing rend in the business but were ndicative of a specialized market segment of Bioclear. The company also said that
economic conditions in Europe, and competitive factors related to its Nordic Water Products Group subsidiary, are contributing to the revised quarterly results outlook. Waterlink anticipates that 2nd quarter rever nues
will be in the range of US$24-26 million, and earnir tgs per share on a fully-diluted b asis will be in the range of JS$O.Ol-0.03 per share. I_.
The
company
also
a nnounced that it has entered itrto a letter of intent to pur-
hase a group of companies y_ith combined annual reve nues of over US$55 million. 7he transaction is scheduled to close in June 1998. Chet S I;Loss, Waterlink’s president aurd chief executive officer, compoS,aid that a principal rrent of the acquisition proE;ram has been to acquire Irecurring revenue products and ‘;ervices, thereby reducing the (:ompany’s reliance on the capi tal goods cycle, in general. md the timing of larger orders, : In particular. ’ Waterlink also announced that it had completed the acqui’ sitions of Aquafine Engineering Services Limited (AES), located in Ely, Cambridgeshire, UK, and Purac Engineering Inc (Purac), located in Wilmington, Delaware.
C v
[mprovements las expired.
Act of 1976
The early termination
of
.his waiting period satisfies a :ondition under the previously announced merger agreement between US Filter and Culligan. Subject to Culligan and US Filter stockholder approvals, and the satisfaction of other conditions, including nc In-US regulatory approvals, thee companies expect to comP’1ete this transaction before the enrd of US Filter’s fiscal first qr ratter, ended 30 June 1998.
TROY MILLS RESTRUCTURES ‘ray Mills Inc is reorganizng its reporting structure ntro three industry groups: lutomotive; apparel and furIishings; and filtration and ethnical fibres. At the same time, operat ions have been combined mder single management 3arrett F Ripley, president :hief executive officer, ant :hairman said that the goa If the new structure was tc focus energy on generatim in sales, placing growth responsibility lower in the organization and combining sing11 under operations
management to better emplo: and coordinate resources Managers of the busines groups will have a clear line o authority and will be accounl able for performance withi their groups. Meanwhile, the search fc a vice president of the filtratio and technical fabrics businer group is currently underwa: The business group will b responsible for all producl US FILTER/ sold into the liquid, air an CULLIGAN DEAL specialty filtration markets, z well as new industrial produ’ PROGRESSES areas such as abrasive SUI strates. The vice president wi US Filter Corporation ai id be made a member of the exe1 Culligan Water Technologi es utive committee and will t Inc have announced that t:he waiting period under the IJS located at the company’s Tro Hart-Scott-Rodino Antitrt 1st New Hampshire headquarter
Filtration Industry Analyst
BBA TO BUY VERATEC IBA Group plc has signed a eiinitive agreement to purhase the assets of Veratec, Paper’s nternational Jonwovens Division. The purchase price, subect to certain post closing djustments, is approximately JS$290 million in cash. The leal, which has been approved I both companies’ boards of rectors, awaits approval by e appropriate governmental Iencies. David Miles, president of BA Nonwovens Division, rid that as Veratec has subantial business in the indus,ial, specialty and medical 1 I markets, the combination rould provide significantly lore balance to BBA’s North I ,merican nonwovens busi. ess. Veratec had 1997 sales OIF pproximately US$250 mil on. The company has manu acturing plants in Georgia ’ Massachusetts, Pennsylvania 7 ;outh Carolina, Wisconsin 1 Mexico and Canada.
WATERLINK REVISES 2Q OUTLOOK Waterlink Inc has warnet d ;hat although revenues fo r the 2nd quarter of its fists 11 year ending 30 Septembe r 1998 will produce signiiicar 1t increases over the prior yea lr quarter, revenues and eat-rIings will not meet markt :t expectations. cite :d company The delayed orders at its Biocle; ar subsidiary as the primary falCtor, adding that economic ar id competitive pressures relatf :d to its Nordic Water Produc ts Group have resulted in low er than expected results. Waterlink explained that it can experience quarterly flu Ctuations in operating resul ts due to the contractual nature of
ts businesses. As a result, the lelay in obtaining several large mrchase orders within one narket segment at its Bioclear subsidiary will significantly mpact quarterly results. The ielays were not an ongoing rend in the business but were ndicative of a specialized market segment of Bioclear. The company also said that
economic conditions in Europe, and competitive factors related to its Nordic Water Products Group subsidiary, are contributing to the revised quarterly results outlook. Waterlink anticipates that 2nd quarter rever nues
will be in the range of US$24-26 million, and earnir tgs per share on a fully-diluted b asis will be in the range of JS$O.Ol-0.03 per share. I_.
The
company
also
a nnounced that it has entered itrto a letter of intent to pur-
hase a group of companies y_ith combined annual reve nues of over US$55 million. 7he transaction is scheduled to close in June 1998. Chet S I;Loss, Waterlink’s president aurd chief executive officer, compoS,aid that a principal rrent of the acquisition proE;ram has been to acquire Irecurring revenue products and ‘;ervices, thereby reducing the (:ompany’s reliance on the capi tal goods cycle, in general. md the timing of larger orders, : In particular. ’ Waterlink also announced that it had completed the acqui’ sitions of Aquafine Engineering Services Limited (AES), located in Ely, Cambridgeshire, UK, and Purac Engineering Inc (Purac), located in Wilmington, Delaware.
C v
[mprovements las expired.
Act of 1976
The early termination
of
.his waiting period satisfies a :ondition under the previously announced merger agreement between US Filter and Culligan. Subject to Culligan and US Filter stockholder approvals, and the satisfaction of other conditions, including nc In-US regulatory approvals, thee companies expect to comP’1ete this transaction before the enrd of US Filter’s fiscal first qr ratter, ended 30 June 1998.
TROY MILLS RESTRUCTURES ‘ray Mills Inc is reorganizng its reporting structure ntro three industry groups: lutomotive; apparel and furIishings; and filtration and ethnical fibres. At the same time, operat ions have been combined mder single management 3arrett F Ripley, president :hief executive officer, ant :hairman said that the goa If the new structure was tc focus energy on generatim in sales, placing growth responsibility lower in the organization and combining sing11 under operations
management to better emplo: and coordinate resources Managers of the busines groups will have a clear line o authority and will be accounl able for performance withi their groups. Meanwhile, the search fc a vice president of the filtratio and technical fabrics businer group is currently underwa: The business group will b responsible for all producl US FILTER/ sold into the liquid, air an CULLIGAN DEAL specialty filtration markets, z well as new industrial produ’ PROGRESSES areas such as abrasive SUI strates. The vice president wi US Filter Corporation ai id be made a member of the exe1 Culligan Water Technologi es utive committee and will t Inc have announced that t:he waiting period under the IJS located at the company’s Tro Hart-Scott-Rodino Antitrt 1st New Hampshire headquarter