Flowserve Corp. has announced that it has acquired Valbart
Srl, a privately owned Italian manufacturer of trunnion-mounted ball valves
(TMBV) used primarily in the oil and gas industry.
“We are very pleased with our acquisition of Valbart and
have confidence that our customers will benefit from the addition of Valbart’s
products to our portfolio,” says Mark Blinn, Flowserve president and chief
executive officer. “Valbart’s premium technology, key position in the upstream
and midstream oil and gas markets, and demonstrated growth potential make it a
compelling strategic fit for our organization.”
Valbart was acquired in a cash transaction valued at
approximately $200 million, which value includes approximately $32 million of
existing Valbart net debt that was repaid at closing. Flowserve funded the
transaction proceeds with cash on hand; the other terms of the acquisition have
not been disclosed.
Valbart, formed in 2003 and headquartered in Mezzago, Italy,
specializes in the design, development and manufacture of a comprehensive range
of API 6A and API 6D TMBVs in split-body, all-welded and top-entry
configurations, which are predominantly used in upstream and midstream oil and
gas applications.
For its fiscal year ended May 31, 2010, Valbart reported
revenues of approximately $104 million and operating income of approximately
$22 million on an unaudited basis.
“Valbart has quickly become a leader in the global TMBV
market, with highly-efficient operations and an outstanding management team,” says
Tom Pajonas, president, Flowserve Flow Control Division. “Valbart’s products
fill a strategic gap in our product portfolio and significantly strengthen our
ability to provide a more complete valve package to oil and gas projects. We
believe that we can quickly and significantly grow Valbart through our
established global sales and service network.”
“We are excited to become part of the Flowserve family,” says
Roberto Bartolena, president, Valbart Srl. “Flowserve provides Valbart with the
global reach we need to continue to grow the business and the resources to
develop new products.”
Flowserve
previously entered into a joint venture agreement with Valbart in December 2009,
focused on combining Valbart’s ball valve technology with Flowserve’s noise and
cavitation-reducing trim designs. The joint venture has since created a
trunnion-mounted control ball valve that is designed to deliver high
performance.
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