CIRCOR International, Inc. (NYSE: CIR) today announced that it has acquired Válvulas S.F. Indústria e Comércio Ltda. (“SF Valves”), a Sao Paulo, Brazil-based manufacturer of valves for the energy market. SF Valves generated approximately $20 million in revenues in 2010 and CIRCOR expects that the acquisition will be accretive to earnings in the first year. Terms of the agreement were not disclosed.
The market for oil and gas valves in Brazil is nearly a half billion dollars and is expected to sustain compound annual growth of 10% through 2020. SF Valves is among a very limited list of domestic valve manufacturers that have attained CRCC (Certificado de Registro de Classificação Cadastral) certification with Petrobras, Brazil’s largest oil and gas producer. Petrobras operates more than 100 production platforms, 16 refineries and 16,000 miles of pipelines.
“This acquisition, which will be integrated into our Energy Group, provides CIRCOR with an immediate and significant presence in the large and growing Brazilian energy market,” said CIRCOR Chairman, President and CEO Bill Higgins. “With SF Valves’ CRCC certification, CIRCOR now has a platform to increase sales to Petrobras, which is expected to invest $200 billion in oil & gas exploration, production and processing in the next few years. In addition, SF Valves maintains a strong position in the growing co-generation and ethanol markets, which we believe will provide CIRCOR with another effective channel to increase revenues.”
About CIRCOR Energy
CIRCOR’s Energy Group designs, manufactures and distributes market leading ball, check, control and safety relief valves as well as pipeline measurement and integrity solutions for use in oil and gas applications. The Energy Group’s flagship brands include: KF, Pibiviesse, Contromatics, Mallard Control, Hydroseal, Sagebrush Pipeline Equipment and Pipeline Engineering.
About CIRCOR International, Inc.
CIRCOR International, Inc. is a leading provider of valves and other highly engineered products that allow customers around the world to use fluids safely and efficiently in the instrumentation, fluid regulation, aerospace and energy markets. More information is available at www.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. These statements include, but are not limited to, the Company’s expectations related to the integration and performance of the SF Valves acquisition. Actual events, performance or results could differ materially from the anticipated events, performance or results expressed or implied by such forward-looking statements. 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, 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.
Frederic M. Burditt, 781-270-1200
Chief Financial Officer