Flow International Corporation
) has announced that it will soon merge with a middle-market
private equity firm, American Industrial Partners (AIP) for a sum
in excess of $200 million. The transaction is anticipated to
close beginning of year 2014.
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As per the agreement signed between the two parties involved,
each outstanding common share of Flow International will be
purchased for $4.05 in cash. The company has already received its
board of directors' approval while it still awaits approval from
its shareholders and regulatory authorities.
Acquisition of Flow International by American Industrial Partners
is anticipated to work in favor of both the companies. The former
expects to maximize its shareholders return through this
American Industrial Partners is primarily engaged in investment
to gain control over industrial businesses headquartered in North
America. Investments are undertaken mainly for corporate
divestitures, management buyouts, recapitalizations, and
Reaction to the news failed to influence Flow International's
share price that stayed at $3.73 at the close of the trading
session on Sep 25, 2013.
A short discussion on Flow International's fiscal first quarter
2014 results has been given been below to provide a glimpse of
the company's financial performance.
The company reported loss per share of 2 cents as compared with
earnings per share of 5 cents recorded in the year-ago quarter
and the Zacks Consensus Estimate of 1 cent earnings per share.
Revenue decreased 10.9% year over year and came in at $59.0
million. Standard System sales in the first quarter declined 27%
year over year; Advanced System sales were up 100%; and
Consumable Parts sales were down 4%.
Flow International is one of the leading manufacturers of
industrial waterjet machines and has a $183 million market
capitalization. This Zacks Rank #4 (Sell) company faces direct
). Another company to watch out for in the industry is
), that carries a Zacks Rank #2 (Buy).