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Flowserve Announces $535M Purchase

March 22, 2002

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DALLAS (AP) _ Valve manufacturer Flowserve Corp. has agreed to buy a British company’s flow control division for $535 million.

The purchase of Invensys PLC’s Chicago-based flow control division is designed to diversify Flowserve’s customer and revenue base, officials said Thursday.

Like Flowserve, the unit manufactures valves and other flow control products for energy, chemical and other industries.

The acquisition is expected to generate $10 million to $15 million in cost savings annually, said C. Scott Greer, Flowserve chairman, president and chief executive.

Flowserve posted a net loss of $1.5 million on revenue of $1.9 billion in 2001. Its operating income was $142.2 million last year.

Invensys’ unit is expected to generate revenue of about $520 million and operating income of about $87 million for the 12 months ending March 31.

Officials said Flowserve, which will employ about 13,000 after the acquisition, will eventually cut some jobs through plant closures. But none of those cuts will come in its home state.

``Actually, we’ll end up adding jobs in Texas, most likely,″ said Greer.

Flowserve now employs about 400 people in Texas, including about 140 at its Irving headquarters.

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