Flowserve Corporation, a provider of flow control products and services for the global infrastructure markets, has submitted a binding offer to acquire the equity of SIHI Group, a global provider of engineered vacuum and fluid pumps and related services, from TBG Europe for consideration of approximately EUR 298M. Flowserve anticipates funding the transaction with cash on hand and debt, with closing expected to occur early in first quarter of 2015.
SIHI Group, based in the Netherlands, and its subsidiaries (SIHI) provide engineered vacuum and fluid pumps, with associated aftermarket parts and services, primarily serving the chemical market, as well as the pharmaceutical, food & beverage and other process industries. SIHI has operations across Europe, the Americas and Asia. SIHI anticipates FY2014 sales of approximately EUR 280M with EBITDA of approximately EUR 30M and gross margins approaching 30%.
“The expected combination of SIHI’s solid installed base, with its leading position as a supplier of vacuum and fluid pumps, ability to enhance our chemical ISO pump strategy, engineering and manufacturing experience, strong gross margin profile, opportunity to leverage increased scale and both revenue and financial synergy potential make SIHI a natural fit for Flowserve that exceeds our disciplined financial requirements which drives solid long-term value for our shareholders”, said Mark Blinn, president and CEO of Flowserve.
