Flowserve sells Tulsa plant to Ruhrpumpen

Flowserve Corp. (Dallas, TX) has sold its Tulsa, OK, plant to Ruhrpumpen Inc., a subsidiary of Corporacion EG (Monterrey, Mexico). The sale was one of the conditions the US Dept. of Justice imposed on Flowserve before allowing the company to acquire Ingersoll-Dresser Pump Co. in August 2000.

The plant produces eight lines of pumps typically used in oil refineries and power generation facilities. In 2000, the eight product lines generated about $50 million of annual sales and about $3 million in earnings before interest and taxes.

In addition to the plant, Ruhrpumpen receives an exclusive license to sell the eight pump lines in the United States and Mexico (except for certain specified customers) and a nonexclusive license to sell them elsewhere.

Flowserve retains a nonexclusive license to otherwise manufacture and sell these lines internationally, as well as the right to sell competing product lines worldwide.

Flowserve plans to use the $5.3 million in cash that it received for the plants to reduce indebtedness. It also says it will incur a pretax loss of about $3 million from the sale, which will be reflected as part of its integration expense in the company's fourth quarter 2000 financial results.

In addition to the eight product lines, Flowserve's agreement with the Dept. of Justice called for the company to divest its repair and service centers in Batavia, IL, and La Mirada, CA.

The company also initiated a series of downsizings following the Ingersoll-Dresser acquisition.

Edited by Alan S. Brown
Managing Editor, Chemical Online
abrown@vertical.net

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