U.S. and U.K. manufacturers looked to pump up their business on Friday, Nov. 14, through two separate agreements that tapped into Germany's strong industrial tradition.
Dallas-based Flowserve Corp. (FLS) agreed to buy SIHI Group BV, a maker of vacuum and fluid pumps for the chemical industry, for €298 million ($370 million), while Britain's IMI plc unveiled an agreement with an enterprise value of €152.6 million for B&R Holding GmbH, a maker of control valves for steam, gas and fluids.
Flowserve would buy SIHI from TBG Europe NV, an Amstelveen, the Netherlands-based investment vehicle of heirs to the German Thyssen Bornemisza family, a wing of the Thyssen industrial family. The heirs tapped investment bank Robert W. Baird & Co. in July to find a new buyer for SIHI after it received inquiries from strategic and financial investors.
"They figured out that they weren't the best owners for SIHI and they had a couple inbound offers," said Baird's Michael Wolff. "We have seen strategics become really motivated to step up if the asset is a good fit. This is one of the biggest recent pump deals."
SIHI is based in the Netherlands and has more than 1,600 employees around the world. The target expects 2014 revenue of €280 million, resulting in Ebitda of €30 million. The deal has an Ebitda multiple of just under 7 times, according to Flowserve.
The buyer said it can double SIHI's Ebitda by 2017 by cutting overlapping activities.
"We are excited about the acquisition of SIHI, which is consistent with Flowserve's ongoing growth strategy to add complementary assets to our portfolio and then accelerate their growth and leverage our operating platform," said Flowserve President CEO Mark Blinn in a statement.