Gestra, which is headquartered in Bremen, Germany, specialises in the design and production of valves and control systems for steam and fluid process control.
In 2016, the Gestra business had revenues of approximately €92.5 million and earnings before interest and taxes of €15.2 million.
Flowserve says that the sale of Gestra is part of an ongoing effort to better align and optimize its product portfolio and manufacturing footprint, focusing on core business objectives that will allow the company to be more competitive when key industry markets return.
“Our decision to divest the Gestra AG product line is consistent with our ongoing efforts to drive long-term shareholder value,” said John Lenander, president, Flowserve Flow Control Division. “While Gestra has been a solid business unit for Flowserve, we believe it is highly complementary to a company like Spirax that has the intent to expand the customer base, invest in the organic business and fully utilize the infrastructure already in place. We are pleased to see our Gestra team members integrated into an industry-leading, steam-focused business like Spirax.”
Nicholas Anderson, chief executive of Spirax-Sarco Engineering plc, said: “We are delighted to be bringing Gestra, its management and employees into the Spirax Sarco family. Our businesses are highly complementary; Gestra will enhance the market and product offering of Spirax Sarco and will benefit from our global footprint and broader product range. We believe that this combination will deliver enhanced value to both customers and shareholders.”
The sale is expected to be completed during the second quarter of 2017, subject to certain customary conditions.
