ITT Announces Agreement to Acquire Rheinhütte Pumpen Group
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Feb 22, 2019--ITT Inc. (NYSE: ITT) announced today that it has signed an agreement to acquire Rheinhütte Pumpen Group, a market-leading designer and manufacturer of centrifugal and axial flow pumps, from Aliaxis Group S.A.
The acquisition aligns with ITT’s focused growth initiatives in target markets and will enhance the Industrial Process (IP) segment’s strategy with a complementary portfolio of centrifugal pump technologies suited to corrosive, abrasive and high-temperature industrial process environments. The acquisition will bolster IP’s presence in Europe with an expanded product range as well as enhanced pump engineering, manufacturing, testing and channel to market capabilities.
Rheinhütte has a 160-year heritage and is regarded as a leading provider of highly engineered pumps suited for the handling of aggressive media. Rheinhütte solutions serve specialty applications for the chemical, mining, renewable energy and refinery processes and include solutions for sulfuric acid, molten sulfur, fertilizer and chlorine-alkali electrolysis production among others.
“The proposed agreement will bring together two companies with long legacies of application expertise across a range of harsh conditions in the industrial process space,” said ITT CEO and President Luca Savi. “We look forward to leveraging Rheinhütte’s deep engineering capabilities to deliver better solutions for our customers and unlock additional growth in key global markets.”
“This agreement reflects our commitment to delivering a comprehensive value proposition to our customers,” said ITT IP President David Malinas. “The addition of the Rheinhütte Pumpen brand to our current portfolio will broaden our worldwide pump presence. We are excited to join these two teams, leveraging their shared skills and commitment to delivering excellent products for our customers and partners.”
Rheinhütte, which is headquartered in Wiesbaden, Germany, anticipates full-year 2018 revenues of approximately $66 million. Rheinhütte has approximately 430 employees and operates in three main manufacturing locations.
The proposed transaction is expected to be accretive to ITT earnings in the first full year after closing. The cash consideration of approximately $91.5 million will be funded from the company’s cash and revolving credit facility and the final purchase price is subject to customary net working capital adjustments. The proposed transaction is expected to close in the second quarter of 2019 and is subject to customary closing conditions, including appropriate regulatory approvals.
ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation and industrial markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. ITT is headquartered in White Plains, N.Y., with employees in more than 35 countries and sales in approximately 125 countries. The company generated 2018 revenues of $2.7 billion. For more information, visit www.itt.com.
Safe Harbor Statement
This release contains “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our business, future financial results and the industry in which we operate, and other legal, regulatory and economic developments. These forward-looking statements include, but are not limited to, future strategic plans and other statements that describe the company’s business strategy, outlook, objectives, plans, intentions or goals, and any discussion of future operating or financial performance.
We use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “future,” “may,” “will,” “could,” “should,” “potential,” “continue,” “guidance” and other similar expressions to identify such forward-looking statements. Forward-looking statements are uncertain and to some extent unpredictable, and involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in, or reasonably inferred from, such forward-looking statements.
Where in any forward-looking statement we express an expectation or belief as to future results or events, such expectation or belief is based on current plans and expectations of our management, expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that the expectation or belief will occur or that anticipated results will be achieved or accomplished. More information on factors that could cause actual results or events to differ materially from those anticipated is included in the Risk Factors section of the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the Securities and Exchange Commission.
The forward-looking statements included in this release speak only as of the date hereof. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190222005023/en/
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: ENERGY OTHER ENERGY TECHNOLOGY DATA MANAGEMENT HARDWARE NETWORKS SOFTWARE NANOTECHNOLOGY TRANSPORT SEMICONDUCTOR OTHER TRANSPORT MOBILE/WIRELESS MANUFACTURING ENGINEERING
SOURCE: ITT Inc.
Copyright Business Wire 2019.
PUB: 02/22/2019 06:45 AM/DISC: 02/22/2019 06:45 AM