Goulds Pumps To Buy Italian Pump Producer
SENECA FALLS, N.Y. (AP) _ Goulds Pumps Inc. on Monday announced it signed a letter of intent to buy Lowara Pumps of Vicenza, Italy, through a stock transfer in the biggest acquisition in the company’s history. Terms were not disclosed.
Lowara, with over $35 million in sales, manufactures a wide range of centrifugal pumps for consumer and light industrial applications and is strong in Europe and Third World countries, according to Goulds. Lowara’s sales have grown more than 15 percent a year, Goulds said.
Goulds had 1984 sales of $286 million and is concentrated in water systems for homes and in certain industrial markets, including chemicals, food and beverage, and pulp and paper.
The addition of Lowara’s product line will give Goulds the broadest range of standard-configuration pumps of any company in the world, according to Stephen V. Ardia, Goulds’ president and chief executive officer.
Lowara is privately owned, with 95 percent of the shares in the hands of two brothers, Renzo and Giancarlo Ghiotto, according to Goulds. Renzo Ghiotto is the company’s president and chairman. Lowara will retain its board of directors and management structure.
″Here we have an entrepreneurial company and we want it to keep that entrepreneurship,″ Ardia said.
Lowara has 700 employees in four plants in northern Italy. Its headquarters in Vicenza is about 60 miles west of Venice.
Goulds has agreed with Lowara on an acquisition price and will pay it with Goulds stock, the company said. Goulds stock is traded over the counter and closed Friday at $17.121/2 a share.
Lowara’s products will be marketed under the Goulds name in the United States and under the Lowara name in some other countries. Also, some Lowara components will be incorporated into Goulds pumps.