) recently announced that it has entered into an agreement to
acquire Joh. Heinr. Bornemann GmbH (Bornemann Pumps) to further
expand its highly-engineered pumps, systems and aftermarket
capabilities to better serve the global oil & gas markets. The
acquisition is expected to cost €206 million for ITT Corporation.
Subject to regulatory closing requirements, the deal is expected to
be completed by the fourth quarter of 2012.
Bornemann Pumps is a leading provider of highly engineered pumps
and systems for the oil & gas industry. This acquisition is a
strategic fit for ITT as it intends to expand in new markets. The
superior displacement technology of Bornemann Pumps enables it to
broaden its capabilities and help it to attain the leadership
position in the ever growing oil & gas markets and other
attractive key end markets.
Bornemann's twin-screw technology in pumps and multiphase
applications bodes well for ITT's existing Industrial Process
business and also compliments ITT's existing Goulds Pumps brand
while further expanding the company's upstream oil and gas
ITT Corporation continues to expand its product portfolio and
geographical presence through a number of strategic acquisitions.
Earlier in 2010, ITT acquired Godwin Pumps in order to expand its
global position in water, wastewater and industrial processes and
compliments ITT's existing Fluid Technology portfolio.
The company is also focusing on extending its footprint in the
emerging markets. ITT broadened its footprint in Latin America
through the acquisition of Canberra Pumps, thus enabling it to
provide more products to the growing oil and gas and mining markets
in the region.
In addition to serving the oil and gas market, Bornemann also
serves the industrial, food and pharmaceutical sectors. Apart from
strategic business match, both these companies also compliment each
other with respect to their strong aftermarket capabilities and
focus on emerging markets. For fiscal 2012, ITT Bornemann is
expected to generate revenues of €115 million.
ITT currently holds a Zacks #4 Rank, which implies a short-term
Sell rating on the stock.
ITT CORP (ITT): Free Stock Analysis Report
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