Gorman–Rupp Announces Expansions of European Operations and Acquisition
September 11 2015 - 8:30AM
Business Wire
The Gorman-Rupp Company (“Company”) (NYSE MKT: GRC) announces
over $10 million of cash investments in expansions of its European
operations in Ireland and The Netherlands and a related planned
acquisition in Belgium.
Ireland – Patterson Pump
Ireland Limited based in Mullingar, Ireland has completed its
construction of and move into its new production, test and
administrative facilities. Patterson Ireland’s former leased
facilities had been expanded several times to 20,000 square feet
over the last 10 years to fill the site’s available space.
Needing to expand more to accommodate growing customer sales and
opportunities lead to collaboration with Mullingar-area development
authority interests to plan and construct a new 40,000 square foot
facility in the local area rather than moving. This
state-of-the-art facility will provide for better integration of
Patterson Ireland’s operations with its U.S.A.-based parent,
Patterson Pump Company. Together these companies are world leaders
in the design, development and sale of large-scale fire protection
systems for buildings and plants with thousands of occupants in
over 25 countries.
Albert Huber, President of the Company’s Patterson Pumps Group
noted that “seventeen years ago after extensive evaluations of
locations to expand internationally, we decided to locate in
Mullingar due to the available and knowledgeable workforce and the
active support of the community combined with the Ireland
Development Authority. The subsequent success of Patterson Pump
Ireland has been directly due to the hard work and dedication of
its work team and we are proud that their results have created the
need for and justified this important expansion to continue our
international growth.”
Jeffrey Gorman, President and CEO of The Gorman-Rupp Company,
commented that “it has been very gratifying to watch Patterson
Pump’s Ireland-based company grow over its relatively short life.
Our Patterson Ireland team has met the challenge of expanding our
core fire protection sales growth outside of the U.S.A. with great
success.”
The Netherlands – The
Company’s Gorman-Rupp Europe B.V. (“G-R Europe”) subsidiary has
completed its consolidation of its operating facilities into a new
larger facility. Formerly located in two smaller locations in
Northern and Southern areas, GR Europe expanded into a larger
single facility in Culemborg, southeast of Amsterdam. This
consolidation provides GR Europe with improved logistical
capabilities to serve its customers including more efficient access
to Rotterdam’s large international commercial port facilities for
receipt of pumps principally supplied by the Company from its
Gorman-Rupp Pumps Group facilities headquartered in Mansfield,
Ohio.
Mark Kreinbihl, Gorman-Rupp Pumps Group President, stated that
he and John Peters, Managing Director of G-R Europe, “are pleased
to re-position but retain Gorman-Rupp’s European base operations in
The Netherlands to improve its operating and distribution
efficiencies and customer service capabilities throughout its
service areas.”
Belgium – The Company also
announces that its G-R Europe subsidiary has reached an agreement
in principal to purchase Hydro+ SA (“Hydro+”) and Hydro+ Rental
SPRL (“Hydro Rental”) (collectively “Hydro”) based near Namur,
Belgium, subject to satisfactory completion of its due diligence
review and of a definitive purchase agreement.
Hydro+ has been the Company’s Belgian pump and pump systems
distributor since 1998, and in 2011 formed Hydro Rental to expand
pump and pump system rentals in the same region. Hydro’s principal
products are centrifugal pumps supplied by the Company, and Hydro+
has begun converting some of these pumps into packaged pump station
systems tailored for its European market. Combined annual revenues
of the Hydro companies are approximately four million U.S. dollars.
The planned business combination is expected to be completed during
September 2015 upon execution of a definitive purchase
agreement.
Yves Givron, Managing Director of Hydro+, will remain in that
capacity and stated that he and “Nicolas Lefevre, Managing Director
of Hydro Rental, and all of the Hydro team members are looking
forward to the opportunities resulting from blending Hydro’s
European pumps expertise with Gorman-Rupp’s 80-plus years of
international design and manufacture of centrifugal pumps and
pumping systems and its broad international distribution
network.”
Mr. Kreinbihl said that he and Mr. Peters “are eager to combine
the respective expertise of the Hydro organization with the G-R
Europe organization to expand the reach of both entities throughout
new areas complementary to the Company’s existing distribution
network across the European Union base.”
Jeffrey Gorman stated he “was excited by the opportunities
expected to arise from combining the Hydro companies with the
Company’s brand name and operations, including Gorman-Rupp,
Patterson Pump, National Pump, AMT, and Gorman-Rupp Industries.
Hydro comfortably fits our operational philosophy with its
established expertise and customer satisfaction experience.”
Mr. Gorman further noted that “although the Company faces a
number of global economic headwinds at this time, we believe these
European expansion investments will help position The Gorman-Rupp
Company for future growth once these temporary challenges are
dissipated or resolved. We continue to be pleased that our 80-plus
years of proven financial strength provides the Company with
exceptional flexibility to make these types of growth-oriented
investments when the appropriate opportunities arise.”
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The Gorman-Rupp CompanyWayne L. Knabel, Chief Financial Officer,
419-755-1397
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