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Flowserve Completes Acquisition of MOGAS Industries

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Flowserve (NYSE: FLS) has completed the acquisition of MOGAS Industries, strengthening its position in severe service valves and aftermarket services. The transaction, valued at approximately $305 million including potential earnout, was funded with cash. This acquisition aligns with Flowserve's 3D strategy, enhancing its valve aftermarket business and expanding its presence in mission-critical severe service valves.

The integration of MOGAS into Flowserve's Flow Control Division segment is expected to bolster the company's portfolio in key growth sectors such as mining, mineral extraction, and process industries. Flowserve aims to leverage its industry-leading scale to expand MOGAS' severe service portfolio and aftermarket services globally, capitalizing on MOGAS' large installed base.

Flowserve (NYSE: FLS) ha completato l'acquisizione di MOGAS Industries, rafforzando la sua posizione nelle valvole per servizi severi e nei servizi post-vendita. La transazione, valutata a circa 305 milioni di dollari, inclusi potenziali guadagni, è stata finanziata in contanti. Questa acquisizione si allinea con la strategia 3D di Flowserve, migliorando la sua attività di post-vendita per le valvole e ampliando la sua presenza nelle valvole mission-critical per servizi severi.

L'integrazione di MOGAS nel segmento della Divisione Flow Control di Flowserve dovrebbe rafforzare il portafoglio dell'azienda in settori chiave di crescita come miniera, estrazione minerale e industrie di processo. Flowserve punta a sfruttare la sua scala leader del settore per espandere il portafoglio di servizi severi di MOGAS e i servizi post-vendita a livello globale, capitalizzando sulla vasta base installata di MOGAS.

Flowserve (NYSE: FLS) ha completado la adquisición de MOGAS Industries, fortaleciendo su posición en válvulas de servicio severo y servicios post-venta. La transacción, valorada en aproximadamente 305 millones de dólares, incluidos posibles beneficios, fue financiada en efectivo. Esta adquisición se alinea con la estrategia 3D de Flowserve, mejorando su negocio de post-venta de válvulas y ampliando su presencia en válvulas de servicio severo críticas para la misión.

Se espera que la integración de MOGAS en el segmento de la División de Control de Flujo de Flowserve refuerce el portafolio de la compañía en sectores clave de crecimiento como minería, extracción de minerales e industrias de procesos. Flowserve busca aprovechar su escala líder en la industria para expandir el portafolio de servicio severo de MOGAS y los servicios post-venta a nivel mundial, aprovechando la amplia base instalada de MOGAS.

Flowserve (NYSE: FLS)는 MOGAS Industries의 인수를 완료하여 심각한 서비스 밸브 및 애프터마켓 서비스에서의 입지를 강화했습니다. 거래는 잠재적인 이익을 포함해 약 3억 5천만 달러로 평가되며 현금으로 자금을 조달했습니다. 이 인수는 Flowserve의 3D 전략과 일치하며, 밸브 애프터마켓 사업을 강화하고 미션 크리티컬 심각 서비스 밸브에서의 존재감을 확장합니다.

MOGAS의 Flowserve 유체 제어 부문 통합은 광업, 광물 추출 및 공정 산업과 같은 주요 성장 분야에서 회사의 포트폴리오를 강화할 것으로 기대됩니다. Flowserve는 업계 최고의 규모를 활용하여 MOGAS의 심각 서비스 포트폴리오와 글로벌 애프터마켓 서비스를 확대하고 MOGAS의 방대한 설치 기반을 활용할 계획입니다.

Flowserve (NYSE: FLS) a finalisé l'acquisition de MOGAS Industries, renforçant ainsi sa position sur le marché des vannes pour services critiques et des services après-vente. La transaction, d'une valeur d'environ 305 millions de dollars, y compris des gains potentiels, a été financée en espèces. Cette acquisition s'aligne avec la stratégie 3D de Flowserve, améliorant son activité après-vente de vannes et élargissant sa présence dans les vannes critiques pour services sévères.

L'intégration de MOGAS au sein de la division Flow Control de Flowserve devrait renforcer le portefeuille de l'entreprise dans des secteurs de croissance clés tels que l'exploitation minière, l'extraction minérale et les industries de transformation. Flowserve vise à tirer parti de son échelle leader dans l'industrie pour étendre le portefeuille de services critiques de MOGAS et les services après-vente à l'échelle mondiale, capitalisant sur la large base installée de MOGAS.

Flowserve (NYSE: FLS) hat die Übernahme von MOGAS Industries abgeschlossen und dabei seine Position im Bereich der schweren Dienstventile und Nachverkaufsdienstleistungen gestärkt. Die Transaktion, die auf etwa 305 Millionen US-Dollar geschätzt wird und potenzielle Earnouts einschließt, wurde in bar finanziert. Diese Übernahme steht im Einklang mit Flowserves 3D-Strategie, verbessert das Nachverkaufsgeschäft von Ventilen und erweitert die Präsenz im Bereich der mission-critical schweren Dienstventile.

Die Integration von MOGAS in den Bereich der Flow Control Division von Flowserve soll das Portfolio des Unternehmens in wichtigen Wachstumsbereichen wie Bergbau, Rohstoffgewinnung und Prozessindustrien stärken. Flowserve zielt darauf ab, seine marktführende Größe zu nutzen, um das schwere Dienstportfolio von MOGAS und die globalen Nachverkaufsdienstleistungen auszubauen und von der großen installierten Basis von MOGAS zu profitieren.

Positive
  • Strengthens Flowserve's position in severe service valves and aftermarket services
  • Expands presence in key growth sectors: mining, mineral extraction, and process industries
  • Enhances valve aftermarket business with MOGAS' large installed base
  • Aligns with Flowserve's 3D strategy for growth
Negative
  • Cash outlay of approximately $305 million for the acquisition

Insights

Flowserve's acquisition of MOGAS Industries for $305 million is a strategic move that significantly enhances its severe service valve portfolio. This transaction aligns with Flowserve's 3D growth strategy and expands its presence in critical sectors like mining and mineral extraction. The deal's structure, including a potential earnout, suggests confidence in MOGAS' future performance. Importantly, Flowserve used cash for the purchase, indicating strong liquidity. With a market cap of $7.25 billion, this acquisition represents about 4.2% of Flowserve's value, a substantial but manageable investment. The integration into the Flow Control Division should drive synergies and expand Flowserve's aftermarket services, potentially boosting recurring revenue streams. Investors should monitor integration progress and the impact on Flowserve's financials in upcoming quarters.

The acquisition of MOGAS Industries significantly bolsters Flowserve's capabilities in severe service valves, a critical component in harsh industrial environments. MOGAS' expertise in this niche complements Flowserve's existing portfolio, potentially leading to enhanced product offerings and innovation. The focus on mining and mineral extraction sectors is particularly noteworthy, as these industries often require highly specialized, durable equipment. This move could position Flowserve as a more comprehensive solution provider in these high-growth sectors. The emphasis on aftermarket services is also crucial, as it typically offers higher margins and more stable revenue streams compared to new equipment sales. By leveraging Flowserve's global scale, there's potential for significant expansion of MOGAS' products and services, which could drive long-term growth and market share gains in the flow control industry.
  • Enhances Flowserve’s severe service portfolio targeting key growth sectors in mining, mineral extraction and process industries
  • Demonstrates company’s commitment to value-creating, inorganic growth through a disciplined capital allocation approach

DALLAS--(BUSINESS WIRE)-- Flowserve Corporation (“Flowserve”) (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, today announced that it has completed the acquisition of MOGAS Industries (“MOGAS”). This transaction helps strengthen Flowserve’s presence in mission-critical severe service valves and associated aftermarket services.

“We welcome the MOGAS team to Flowserve and look forward to leveraging our industry-leading scale to expand the MOGAS severe service portfolio and aftermarket services to customers around the world,” said Scott Rowe, President and CEO of Flowserve. “This acquisition accelerates growth under our 3D strategy and enhances our valve aftermarket business with MOGAS’ large installed base.”

Flowserve intends to fully integrate MOGAS into its Flow Control Division segment.

As previously disclosed, Flowserve used cash to fund the transaction’s purchase price of approximately $305 million including the potential earnout.

About Flowserve

Flowserve Corp. is one of the world’s leading providers of fluid motion and control products and services. Operating in more than 50 countries, Flowserve produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting Flowserve’s Web site at www.flowserve.com.

Safe Harbor Statement: This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: economic, political and other risks associated with our international operations, including military actions, trade embargoes, epidemics or pandemics or changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; any continued volatile regional and global economic conditions resulting from the COVID-19 pandemic on our business and operations; global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers’ ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the oil and gas, chemical, power generation and water management industries; the adverse impact of volatile raw materials prices on our products and operating margins; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Venezuela and Argentina; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the U.S., as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission.

All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.

Investors:

Brian Ezzell, Vice President, Investor Relations, Treasurer & Corporate Finance (972) 443-6560

Tarek Zeni, Director, Investor Relations (469) 420-4045

Media:

Wes Warnock, Vice President, Marketing, Communications & Public Affairs (972) 443-6900

Source: Flowserve Corporation

FAQ

What company did Flowserve (FLS) acquire?

Flowserve (NYSE: FLS) acquired MOGAS Industries, a company specializing in severe service valves and associated aftermarket services.

How much did Flowserve (FLS) pay for the MOGAS Industries acquisition?

Flowserve paid approximately $305 million for the acquisition of MOGAS Industries, including a potential earnout. The transaction was funded with cash.

What are the key benefits of Flowserve's (FLS) acquisition of MOGAS Industries?

The acquisition strengthens Flowserve's presence in mission-critical severe service valves, enhances its valve aftermarket business, and expands its portfolio in key growth sectors such as mining, mineral extraction, and process industries.

How does the MOGAS acquisition align with Flowserve's (FLS) strategy?

The acquisition accelerates growth under Flowserve's 3D strategy and demonstrates the company's commitment to value-creating, inorganic growth through a disciplined capital allocation approach.

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