CIRCOR Strengthens Position in the Brazil Energy Market with the Acquisition of Válvulas S.F. Indústria e Comércio Ltda.
08 February 2011 - 12:00AM
Business Wire
CIRCOR International, Inc. (NYSE: CIR) today announced that it
has acquired Válvulas S.F. Indústria e Comércio Ltda. (“SF
Valves”), a Sao Paulo, Brazil-based manufacturer of valves for the
energy market. SF Valves generated approximately $20 million in
revenues in 2010 and CIRCOR expects that the acquisition will be
accretive to earnings in the first year. Terms of the agreement
were not disclosed.
The market for oil and gas valves in Brazil is nearly a half
billion dollars and is expected to sustain compound annual growth
of 10% through 2020. SF Valves is among a very limited list of
domestic valve manufacturers that have attained CRCC (Certificado
de Registro de Classificação Cadastral) certification with
Petrobras, Brazil’s largest oil and gas producer. Petrobras
operates more than 100 production platforms, 16 refineries and
16,000 miles of pipelines.
“This acquisition, which will be integrated into our Energy
Group, provides CIRCOR with an immediate and significant presence
in the large and growing Brazilian energy market,” said CIRCOR
Chairman, President and CEO Bill Higgins. “With SF Valves’ CRCC
certification, CIRCOR now has a platform to increase sales to
Petrobras, which is expected to invest $200 billion in oil &
gas exploration, production and processing in the next few years.
In addition, SF Valves maintains a strong position in the growing
co-generation and ethanol markets, which we believe will provide
CIRCOR with another effective channel to increase revenues.”
About CIRCOR Energy
CIRCOR’s Energy Group designs, manufactures and distributes
market leading ball, check, control and safety relief valves as
well as pipeline measurement and integrity solutions for use in oil
and gas applications. The Energy Group’s flagship brands include:
KF, Pibiviesse, Contromatics, Mallard Control, Hydroseal, Sagebrush
Pipeline Equipment and Pipeline Engineering.
About CIRCOR International, Inc.
CIRCOR International, Inc. is a leading provider of valves and
other highly engineered products that allow customers around the
world to use fluids safely and efficiently in the instrumentation,
fluid regulation, aerospace and energy markets. More information is
available at www.circor.com.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Reliance should not be placed on forward-looking
statements because they involve unknown risks, uncertainties and
other factors, which are, in some cases, beyond the control of
CIRCOR. These statements include, but are not limited to, the
Company’s expectations related to the integration and performance
of the SF Valves acquisition. Actual events, performance or results
could differ materially from the anticipated events, performance or
results expressed or implied by such forward-looking statements.
BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR COMPANY, WE
STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK FACTORS" IN
OUR MOST RECENT ANNUAL REPORT ON FORM 10-K, WHICH CAN BE ACCESSED
UNDER THE "INVESTORS" LINK OF OUR WEBSITE AT WWW.CIRCOR.COM. We
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
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