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Flowserve Recently Sold Gestra AG
Business Unit To Spirax-Sarco
Flowserve Corporation (NYSE: FLS), a
leading provider of flow control products and
services for the global infrastructure markets,
announced it has entered into a conditional
sale and purchase agreement to sell its Gestra
AG business unit to Spirax-Sarco Engineering
plc (LON: SPX), a leading provider of steam
system solutions, for an Enterprise Value of
€186 million. In addition to the product’s core
manufacturing facilities in Bremen, Germany,
the sale also includes several other smaller
associated businesses supporting Gestra
products.
The sale is part of an ongoing effort by
Flowserve to better align and optimize its
product portfolio and manufacturing footprint,
focusing on core business objectives that will
allow the company to be more competitive
when key industry markets return.
“Our decision to divest the Gestra AG product
line is consistent with our ongoing efforts
to drive long-term shareholder value,” said
John Lenander, President, Flowserve Flow
Control Division. “While Gestra has been a
solid business unit for Flowserve, we believe
it is highly complementary to a company
like Spirax that has the intent to expand the
customer base, invest in the organic business
and fully utilize the infrastructure already in
place. We are pleased to see our Gestra team
members integrated into an industry-leading,
steam-focused business like Spirax.”
Flowserve obtained Gestra AG in 2002 as part
of the acquisition of Invensys Flow Control. In
2016, the Gestra business recorded revenues
of approximately €92.5 million with earnings
before interest and taxes of €15.2 million,
and its gross assets at year end 2016 were
approximately €67 million. The transaction is
expected to be completed during the second
quarter of 2017, subject to certain customary
conditions, including regulatory approval of
the transaction by the German authorities.
Gestra AG Headquarters in Bremen
Source: Gildenhaus Lankenau Architekten BDA
Water Leaders • May 2017
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