JULY 2002 ISSN 1365-6937
DONALDSON TO BUY ULTRAFILTER FOR 72 MILLION Donaldson Co Inc is to acquire 100% of the shares of Ultrafilter International AG, headquartered in Haan, Germany, for 72 million. Ultrafilter, with operations in 30 countries, designs and manufactures components, replacement parts and complete systems for condensate and compressed air purification. It also makes sterile gas and liquid filters for markets such as the chemical, pharmaceutical and microelectronics industries. Its annual sales total around US$100 million. Bill Van Dyke, Donaldson’s chairman, president and CEO, said that Ultrafilter completely fitted all the elements of Donaldson’s 12-year-old diversification strategy: it expands Donaldon’s presence in industrial markets; it focuses on replacement parts; and the majority of its revenues are outside of the USA. “In one transaction we reduce our relative dependence on mobile diesel engines, new capital equipment and the US economy, creating a more balanced portfolio and enhancing the stability of our performance over time,” said Van Dyke. The two organizations are expected to boost each other’s expansions in the US, Asian and European markets.
Dirk Kronsbein, chairman, CEO and founder of Ultrafilter, noted that the transaction was the culmination of seven years of discussions with Donaldson. “Donaldson’s patient persistence and the efforts it has made to understand and appreciate Ultrafilter’s strengths made it the strongest suitor when the time came to find a buyer for the company.” The transaction, due for completion in August 2002, is expected to be earnings neutral for fiscal 2003 and accretive thereafter.
COMMENT This acquisition in compressed air purification builds on Donaldon’s 1999 purchase of AirMaze (see Filtration Industry Analyst, December 1999), but also brings Donaldson a substantial range of air and liquid filter technology not traditionally offered by the company. Donaldson, with its proven track record in integrating acquisitions, should benefit substantially from the addition of Ultrafilter with its impressive background of 14% average revenue growth over the last five years. ■
CAMFIL SELLS ENGINE DIVISION TO PARKER
ITT BUYS PURE WATER DIVISION FROM WATERLINK
Parker Hannifin Corp has acquired Camfil Farr’s engine air filter division for just under SKr140 million or US$14 million. The engine division, based in Holly Springs, Mississippi and with an office in Memphis, Tennessee, produces air-intake filtration products for use in trucks and other diesel-driven vehicles. It originally formed part of Farr Co Inc, which merged with Camfil AB in 2000 (see Filtration Industry Analyst, May 2000, June 2000). The unit, which posted sales of US$15 million last year, was not considered by Camfil Farr to be part of its core business. “This sale means that we are streamlining our operations and can focus resources on our core business,” said Alan O’Connell, Camfil Farr’s CEO. Parker stock was used to complete the purchase, which will form part of the company’s Filtration Group. The engine division expands Parker’s position in the air–fluid filtration and conditioning markets, currently represented by the Racor line. “Racor is a top performer with broad distribution, so we have a great opportunity to expand the reach of Farr’s products for meaningful growth,” said John Oelslager, president of Parker’s Filtration Group.
ITT Industries Inc has acquired the assets of Waterlink’s Pure Water Division, including the WET, C’Treat and WETEC product lines. Proceeds from the sale will be used to reduce Waterlink’s senior debt (see Filtration Industry Analyst, May 2002). The Pure Water Division, with its 85 staff, specializes in membrane-based separation technology. It will form an operating unit of ITT Sanitaire, which has a wastewater treatment range that includes ceramic and membrane fine bubble aeration systems and activated sludge plants. “The new addition of the Pure Water Division follows our strategy of migrating ITT Industries and Sanitaire from a provider of products to a provider of total systems solutions to the water and wastewater market,” said Robert Ayers, president of ITT Fluid Technology. Tom Pokorsky, president of Sanitaire, described the acquisition as a cornerstone for diversification into the water treatment market. “This expansion will lead us into the fast growing desalination, industrial re-use and surface water treatment markets,” he added. ITT Industries supplies products and services to markets including electronics, defence communication, and fluid and water management.
CONTENTS COMPANY PROFILE 5–6 COMPANY WATCH 7–9 DIARY 15 ECONOMIC REVIEW 14 IN BRIEF 11–13 MARKET PROSPECTS 2–4 NEW PRODUCT DEVELOPMENTS 14 NEWS 1,12,13,16 ORDERS 10 PEOPLE 11 STOCK WATCH 15 ISSN 1365-6937/02/$22.00 © 2002 Elsevier Science Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Science Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.