CIRCOR Announces Sale of Non-Core Spence and Nicholson Product Lines for $84.5 Million
September 03 2019 - 7:30AM
Business Wire
Transaction Enhances Focus on Core Flow-Control
Business; Company to Use Cash Proceeds to Pay Down Debt
CIRCOR International, Inc. (NYSE: CIR), a leading provider of
flow-control solutions and other highly engineered products for the
Industrial, Energy and Aerospace & Defense markets, today
announced the sale of certain assets and liabilities relating to
its Spence and Nicholson product lines to Emerson (NYSE: EMR)
for approximately $84.5 million in cash, subject to an adjustment
for working capital. The transaction closed on Friday, August 30,
2019. The Company expects to use the net proceeds from the sale to
pay down outstanding debt.
“Consistent with our growth strategy, this divestiture sharpens
the focus on our core, mission-critical flow-control platforms and
delivers on our commitment to strengthen our balance sheet,” said
Scott Buckhout, President and Chief Executive Officer of CIRCOR.
“The Board of Directors and management are confident that the steps
we are taking, including the evaluation of other non-core
businesses, will continue to deliver enhanced value for our
shareholders in the near- and long-term.”
For 2018, the Spence and Nicholson product lines contributed
approximately $7 million of operating income. The product lines
provide steam regulators and steam traps for the district heating
market.
About CIRCOR International, Inc.
CIRCOR International, Inc. designs, manufactures and markets
highly engineered products and sub-systems for markets including
Industrial, Energy and Aerospace & Defense. CIRCOR has a
diversified product portfolio with recognized, market-leading
brands that fulfill its customers’ unique application needs. The
Company’s strategy is to grow organically and through complementary
acquisitions; simplify the Company; achieve world class operational
excellence through the application of the CIRCOR Operating System;
and attract and retain top industry talent. For more information,
visit the Company’s investor relations website at
http://investors.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. Any statements in this press release that are not
statements of historical fact are forward-looking statements,
including, but not limited to, the expected uses of cash from the
proceeds of the sale of the Spence and Nicholson product lines, and
the evaluation of the sale of other non-core businesses to further
accelerate the reduction of outstanding debt. Actual events,
performance or results could differ materially from the anticipated
events, performance or results expressed or implied by such
forward-looking statements. Important factors that could cause
actual results to vary from expectations include, but are not
limited to: any required post-closing adjustments to the purchase
price; our ability to respond to competitive developments and to
grow our business, both domestically and internationally; changes
in the cost, quality or supply of raw materials; our ability to
comply with our debt obligations; our ability to successfully
implement our acquisition, divesture or restructuring strategies,
including our integration of the Fluid Handling business; changes
in industry standards or government regulations, both in the United
States and internationally; and our ability to operate our
manufacturing facilities at current or higher levels and respond to
increases in manufacturing costs. 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 AND SUBSEQUENT QUARTERLY REPORTS ON FORM 10-Q, 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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version on businesswire.com: https://www.businesswire.com/news/home/20190903005449/en/
CIRCOR International, Inc. David F. Mullen, Senior Vice
President (781) 270-1200 CIR@investorrelations.com
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