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Pump Industry Analyst May 1998

DESMI IN DISTRIBUTION

DEAL The Danish company A/S De Smithske (DESMI) is expanding its pump product portfolio to include progress- ing cavity pumps, following a distribution agreement with Robbins & Myers.

The exclusive agreement is for the territories of Denmark, Faroe Islands and Greenland. DESMI was established in 1834 and employs 270 people in sales and service depart- ments throughout Denmark and at manufacturing plants in Aalborg and Odense. The com- pany manufactures the Rotan internal gear pump.

PCC COMPLETES TENDER

OFFER FOR ENVIRONMENT

ONE Precision Castparts Corp (PCC) has completed its cash tender offer for Environment One Corporation (E/One), a manufacturer of highly engi- neered equipment for low pressure sewer systems based in Niskayuna, New York.

PCC announced the pro- posed acquisition of E/One earlier this year (see Pump Industry Analyst, March 1998) and commenced a cash tender offer to purchase all outstand- ing shares of E/One common stock for US$15.25 per share. The acquisition of E/One was subject to the tender of two- thirds of E/One's outstanding shares on a fully diluted basis. At the expiration of the tender offer at midnight on 30 March 1998, 78 per cent of E/One's outstanding shares on a fully diluted basis had been tendered (86 per cent of the total out- standing shares), and all ten- dered shares have been accept- ed for payment. PCC expects to complete the acquisition of the remaining outstanding shares of common stock of E/One pursuant to a merger

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between E/One and a wholly owned subsidiary of PCC with- in 60 days.

On completion of the acquisition, E/One will report into PCC Flow Technologies Inc, a manufacturer of high- quality fluid-handling pumps, valves, and measurement instruments, headquartered in Houston, Texas.

WORLDWATER SIGNS US$4

MILLION KENYAN SOLAR WATER

PUMP DEAL WorldWater Corp has signed a contract with the Kenyan non-governmental organiza- tion Northern Aid to drill 28 boreholes and install the company's proprietary AquaSafe solar water pumps as part of an emergency effort to help 750 000 nomads.

The nomads have recently been stranded by drought fol- lowed by torrential rains, gen- erally attributed to the E1 Nino weather phenomenon.

The US Air Force is airlift- ing food and medicine to the stricken area. The Islamic Development Bank of Jeddah, Saudi Arabia, will be funding the WorldWater operation, budgeted at US$4 million, according to Northern Aid. WorldWater expects to operate from Nairobi, where it will set up offices in conjunction with Northern Aid.

WorldWater chief execu- tive officer Quentin T Kelly said the territory will be extremely difficult to access, because the dirt and desert tracks and roads have been mostly washed away by the recent floods. WorldWater will use the hydrogeological services of Vincent Uhl Associates of Washington Crossing, PA, in siting and drilling the wells.

In February, Kelly, Uhl and two other members of the WorldWater team travelled to Somalia, where WorldWater was appointed master consul-

tant for water and power to the newly forming Somali govern- ment. Initial installation of its solar water pumps and solar electrical equipment for elec- trical power and telecommuni- cations are expected to begin this summer, according to Kelly, after the new govern- ment is in place and the Arab League members begin their scheduled funding of the urgently needed water and power infrastructure in the country. Meetings in Nairobi with Northern Aid during that trip have now resulted in the Northeast Kenyan emergency contract, Kelly stated.

JOHNSON PUMP (UK) AND

AXFLOW EXTEND LINKS

Johnson Pump (UK) and AxFlow are extending their mutual co-operation and presence in Europe.

AxFlow companies have now been appointed authorised distributors in Sweden, Denmark, Finland and Germany, for the UK company, increasing the number of AxFlow companies exclusive- ly distributing and servicing Johnson Pump (UK) Ltd pumps in Europe to nine. This new arrangement has taken effect from 1 April 1998.

Johnson Pump (UK) Ltd, a subsidiary of Viking Pump Inc, USA, manufactures rotary lobe pumps under the On Line, Classic, Albin and Concept SQ brand names. Commenting on the agreement, Bob Whittome, Johnson Pump (UK) Ltd's man- aging director, said AxFlow would be the only distributor in those countries supplying gen- uine Johnson Pump (UK) Ltd products and spare parts. With these new AxFlow appoint- ments, Johnson Pump (UK) Ltd will terminate the previous distribution agreements with Johnson Pump International, headquartered in Sweden. New distributors in France and Norway will be announced in the near future.

The AxFlow Group, estab- lished in 14 countries in Europe, specialises in the marketing, distribution and provision of a complete sales engineering service for high quality, market leading fluid handling equipment. The AxFlow Group has an annual turnover of SKr800 million and 450 employees and is a subsidiary of Axel Johnson International AB, Stockholm, Sweden.

INDUSTRIAL HOLDINGS ACQUIRES

MOORES PUMP AND SUPPLY

Moores Pump and Supply Inc of Lafayette, Louisiana, has been acquired by Industrial Holdings Inc (IHI) of Houston, Texas.

Moores is a supplier and servicer of pumps and packers to the energy industry, as well as a provider of fabrication, repair and machine shop ser- vices. Moores will operate within IHI's Energy Division and will complement its exist- ing valve repair and manufac- turing businesses.

Robert E Cone, president of IHI, described Moores, which is IHI's fourth acquisi- tion this year, as "an excellent fit", providing additional ser- vices to IHl's current customer base. Cone added that Moores had consistently generated strong cash flow and earnings, and with the acquisition of Moores, IHI's 1997 pro forma revenues were approximately US$140 million and its earn- ings before interest, taxes, depreciation and amortization were approximately US$14 million.

IHI operates through two divisions: Energy Products and Services; and Fastener Sales and Manufacturing. The com- pany continues to explore the market for potential acquisi- tions in light manufacturing industries compatible with its divisions.