Invensys sells flow control business to Flowserve

Invensys plc and Flowserve Corp. announced May 3 that they recently completed the sale of Invensys’ flow control business to Flowserve for $535 million. The acquisition creates the world’s second largest valve company, according to Flowserve. Invensys will use revenue from the sale to reduce its debt. The two firms exchanged contracts on March 22, 2002, and revenues and PBIT for the year ending March 31, 2002, were estimated at around $520 million and $65 million respectively. Net assets, which are the subject of the transaction, totaled approximately $330 million. Goodwill written off to reserves by Invensys relating to acquisitions made over the last 25 years for the flow control business amounted to approximately $130 million. Invensys states the sale is consistent with its previously stated objectives to divest non-core assets.

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