Fri, 11/14/2014 - 00:00

DALLAS (Nov. 14, 2014) – Flowserve Corporation has announced that it has submitted a binding offer to acquire the equity of SIHI Group B.V., a global provider of engineered vacuum and fluid pumps and related services, from TBG Europe NV for consideration of approximately 298 million euros ($372.5 million equivalent1). Closing is subject to standard regulatory approvals and other customary conditions. The relevant work councils of SIHI and other employee representative bodies will also be consulted prior to formal agreement. Flowserve anticipates funding the transaction with cash on hand and debt, with closing expected to occur early in the first quarter of 2015. Netherlands-based SIHI Group and its subsidiaries provide engineered vacuum and fluid pumps with associated aftermarket parts and services, primarily serving the chemical market, as well as the pharmaceutical, food and beverage and other process industries. SIHI has operations across Europe, the Americas and Asia. SIHI anticipates fiscal year 2014 sales of approximately 280 million euros ($350 million1) with EBITDA of approximately 30 million euros ($37.5 million1) and gross margins approaching 30 percent. “We are excited about the acquisition of SIHI, which is consistent with Flowserve’s ongoing growth strategy to add complementary assets to our portfolio and then accelerate their growth and leverage our operating platform,” said Mark Blinn, president and CEO of Flowserve. “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.” Flowserve Corp. is a provider of fluid motion and control products and services. (1) Utilizing a 1.25 foreign currency exchange rate