Flowserve Corp. (NYSE:FLS), a global provider of fluid
motion and control products and services, announces today the
acquisition of HydroTechnik Olomouc, s.r.o., a privately held
mechanical seal manufacturer based in Olomouc, Czech Republic. Terms
of the deal were not disclosed.
Established in 1992, HydroTechnik Olomouc (HTO) offers an
established lineup of mechanical seals and related products, focusing
on Czech original equipment manufacturers, and power and process
industry markets. In 2005, HTO generated $860,000 in revenue.
"This addition to Flowserve's portfolio of products and services
offers tremendous potential for expansion of capacity in Eastern
Europe," said Andy Beall, president, Flowserve Flow Solutions. "It is
a positive step for Flowserve in helping increase our presence in the
region, and supporting our key strategy of globalization."
The acquisition gives Flowserve a quick path forward in supporting
customers and expanding business in the Czech Republic and throughout
Eastern Europe. HTO provides an excellent facility with strong
internal quality processes. The Olomouc facility immediately will be
configured as a Flowserve Quick Response Center (QRC) to support
regional customers.
"The outcome of this agreement is positive for both
organizations," Beall added. "And, it also benefits existing HTO
customers, who now have access to the expanded resources of a global
company with products and services beyond HTO's mechanical seal
offerings."
HTO was formed out of the former SIGMA Pumps Research Institute
when many of its top seal specialists decided to form an independent
company. The successful focus of the company remains development,
design and production mechanical seals for pumps and hydraulic
equipment producers.
About Flowserve Corp.
Flowserve Corp. is one of the world's leading providers of fluid
motion and control products and services. Operating in 56 countries,
the company produces engineered and industrial pumps, seals and valves
as well as a range of related flow management services. More
information about Flowserve Corp. can be obtained by visiting the
company's website at www.flowserve.com.
SAFE HARBOR STATEMENT: This news release includes forward-looking
statements. Forward looking statements are all statements that are not
statements of historical facts and include, without limitation,
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 words "believe," "seek,"
"anticipate," "plan," "estimate," "expect," "intend," "project,"
"forecast," "predict," "potential," "continue," "will," "may,"
"could," "should," and other words of similar meaning are intended to
identify forward-looking statements. The forward-looking statements
made in this news release are made pursuant to safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors that, in some cases, are beyond our
control. These risks, uncertainties and factors may cause our actual
results, performance and achievements, or industry results and market
trends, to be materially different from any future results,
performance, achievements or trends expressed or implied by such
forward-looking statements. Important risks, uncertainties and other
factors that could cause actual results to differ from these
forward-looking statements include, but are not limited to, the
following: delays in future reports of the Company's management and
outside auditors on the Company's internal control over financial
reporting and related certifications; continuing delays in the
Company's filing of its periodic public reports and any SEC, NYSE or
debt rating agencies' actions resulting therefrom; the possibility of
adverse consequences of the pending securities litigation and SEC
investigations; the possibility of adverse consequences of
governmental tax audits of the Company's tax returns, including the
upcoming IRS audit of the company's U.S. tax returns for the years
2002 through 2004; the Company's ability to convert bookings, which
are not subject to nor computed in accordance with generally accepted
accounting principles, into revenues at acceptable, if any, profit
margins, since such profit margins cannot be assured nor be
necessarily assumed to follow historical trends; changes in the
financial markets and the availability of capital; changes in the
already competitive environment for the Company's products or
competitors' responses to the Company's strategies; the Company's
ability to integrate acquisitions into its management and operations;
political risks, military actions or trade embargoes affecting
customer markets, including the continuing conflict in Iraq and its
potential impact on Middle Eastern markets and global petroleum
producers; the Company's ability to comply with the laws and
regulations affecting its international operations, including the U.S.
export laws, and the effect of any noncompliance; the health of the
petroleum, chemical, power and water industries; economic conditions
and the extent of economic growth in the U.S. and other countries and
regions; unanticipated difficulties or costs associated with the
implementation of systems, including software; the Company's relative
geographical profitability and its impact on the Company's utilization
of foreign tax credits; the recognition of significant expenses
associated with realigning operations of acquired companies with those
of Flowserve; the Company's ability to meet the financial covenants
and other requirements in its debt agreements; any terrorist attacks
and the response of the U.S. to such attacks or to the threat of such
attacks; technological developments in the Company's products as
compared with those of its competitors; changes in prevailing interest
rates and the Company's effective interest costs; and adverse changes
in the regulatory climate and other legal obligations imposed on the
Company. It is not possible to foresee or identify all the factors
that may affect our future performance or any forward-looking
information, and new risk factors can emerge from time to time. Given
these risks and uncertainties, you should not place undue reliance on
forward-looking statements as a prediction of actual results. All
forward-looking statements included in this news release are based on
information available to us on the date of this news release. We
undertake no obligation to revise or update any forward-looking
statement or disclose any facts, events or circumstances that occur
after the date hereof that may affect the accuracy of any
forward-looking statement.
