CIRCOR sells non-core business
Published by Lydia Woellwarth,
CIRCOR International, Inc., a leading provider of flow control solutions and other highly engineered products for the industrial, energy and aerospace & defence markets, has announced the sale of its Reliability Services business to an affiliate of RelaDyne LLC, a leading provider of lubricants and industrial reliability services, for approximately US$85 million in cash, on a cash-free, debt-free basis. The Company expects to use the net proceeds from the sale to pay down outstanding debt.
“This transaction is in line with our strategy to focus on CIRCOR’s core mission-critical flow control platform and underscores our commitment to strengthening our balance sheet,” said Scott Buckhout, President and Chief Executive Officer of CIRCOR. “We continue to evaluate the sale of other non-core businesses to further accelerate the reduction of our outstanding debt.”
For 2018, CIRCOR currently estimates that the Reliability Services business will generate approximately US$65 million of revenue with an adjusted operating margin of approximately 10%. The Reliability Services business provides critical lubrication and flushing services, and oil misting equipment to customers in the oil and gas, petrochemical, power generation, industrial and navy markets.
About CIRCOR International, Inc.
CIRCOR International, Inc. designs, manufactures and markets highly engineered products and sub-systems for markets including oil and gas, power generation and aerospace & defence. CIRCOR has a diversified product portfolio with recognised, market-leading brands that fulfil its customers’ unique application needs. The Company’s strategy is to grow organically and through complementary acquisitions; simplify CIRCOR’s operations; achieve world class operational excellence; and attract and retain top industry talent.
Read the article online at: https://www.worldpipelines.com/business-news/29012019/circor-sells-non-core-business/
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