Flowserve divests Tulsa pump plant

Flowserve Corp., Dallas, Tex., Tuesday said it has sold its Tulsa plant to Ruhrpumpen Inc., a subsidiary of Corporacion EG of Monterrey, Mexico, for $5.3 million. The US Justice Department required Flowserve to divest the plant following its acquisition of the Ingersoll-Dresser Pump Co.


Flowserve Corp., Dallas, Tex., Tuesday said it sold its Tulsa, Okla., plant to Ruhrpumpen Inc., a subsidiary of Corporacion EG of Monterrey, Mexico, for $5.3 million on Dec. 29.

The US Justice Department required Flowserve to divest the plant following its acquisition of the Ingersoll-Dresser Pump Co., which the government approved in July 2000.

Oil refineries and power generation facilities typically use the pumps involved in the divestiture.

Flowserve will apply the proceeds to reduce debt. It will incur a pretax loss of about $3 million from the sale, which will be reflected in its fourth quarter financial results.

The divestiture also provides Ruhrpumpen an exclusive license to sell eight different pump lines in the US and Mexico, except for certain specified customers, plus a non-exclusive license to sell these elsewhere.

Flowserve retained a non-exclusive license to otherwise manufacture and sell these lines internationally, as well as the right to sell competing product lines worldwide.

In 2000, the licensed product lines generated, on a pro forma basis, $50 million/year in sales and $3 million in earnings before interest and taxes.

Flowserve, which operates in 30 countries, had 1999 sales of $2.1 billion.

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