Blog Coverage CIRCOR Announces $210 Million Acquisition of Provider of Critical Severe Service Equipment for Refining Operations

LONDON, UK / ACCESSWIRE / October 14, 2016 / Active Wall St. blog coverage looks at the headline from CIRCOR International, Inc. (NYSE: CIR) as the company), a leading provider of valves and other highly engineered products for markets including oil & gas, power generation and aerospace & defense, announced on October 13th, 2016, that it will acquire Critical Flow Solutions for $210 million. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

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The Transaction

Critical Flow Solutions manufactures critical severe-service equipment for refining operations. The company’s DeltaValve brand is the market leader and offers solutions for the delayed coking process in refineries. The TapcoEnpro brand provides market leading solutions for the fluid catalytic cracking process in refineries. Critical Flow Solutions has a total of approximately 200 employees at its Salt Lake City, Utah headquarters, Houston, Texas facilities and Barnsley, and UK service center.

Critical Flow Solutions recorded revenue of approximately $120 million with EBITDA margins over 20% for the fiscal year ended June 30, 2016. The acquisition is anticipated to close shortly and become accretive in the first 12 months of combined operations. CIRCOR plans to use its existing credit facility to finance the acquisition. CIRCOR expects to operate the newly acquired business as part of the Energy Group.

“We are very excited to welcome the CFS team to CIRCOR,” said Scott Buckhout, President and Chief Executive Officer of CIRCOR International, “This acquisition diversifies CIRCOR’s revenue base as we further penetrate the stable downstream refining market. CFS brings an impressive portfolio of high technology valves and automation equipment for severe-service applications. CFS generates strong margins due to its unique technology, large installed base, and high proportion of aftermarket sales.”

Preliminary Results

On October 06th, 2016, CIRCOR announced preliminary financial results for Q3 2016 ended October 2, 2016. The Company expects sales for Q3 2016 to be in the range of $133 million to $135 million, compared to the previous guidance range of $140 million to $150 million. CIRCOR also expects GAAP EPS in the range of $0.22 to $0.28 and adjusted EPS in the range of $0.41 to $0.45, compared to the previous guidance of adjusted EPS in the range of $0.45 to $0.55. Included in the preliminary GAAP and adjusted EPS amounts is a benefit of approximately $0.09 for a discrete tax item that arose after the Company provided its Q3 2016 guidance.

“Our preliminary third quarter results reflect the prolonged weakness in the Energy markets across both short cycle and long cycle businesses,” said Scott Buckhout.

Stock Performance

At the closing bell, on Thursday, October 13, 2016, CIRCOR International’s stock marginally fell 0.26%, ending the trading session at $49.36. A total volume of 283.86 thousand shares were traded at the end of the day, which was higher than the 3-month average volume of 85.42 thousand shares. In the last six months and previous twelve months, shares of the company have advanced 5.16% and 8.32%, respectively. Moreover, the stock gained 17.38% since the start of the year.

CIRCOR plans to announce its final financial results for Q3 2016 on October 28th, 2016, and the company will provide guidance for Q4 2016 at that time.

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