Dresser-Rand Agrees to Acquire Arrow Industries, Inc. and Completes Acquisition of Assets of Enginuity LLC |
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By: Dresser-Rand Group Inc. Posted: 2008-08-10 08:15:44 |
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Dresser-Rand Group Inc. ("Dresser-Rand" or the "Company") (NYSE: DRC), a global supplier of rotating equipment to the oil, gas, petrochemical, and process industries, announced today that its affiliates have entered into two acquisition agreements. Each is consistent with the company's strategy of acquiring products, services, and technologies that offer access to new markets or enhance current market positions, and each will enable Dresser-Rand to expand services to its clients. The acquisitions are expected to be neutral to earnings in the first year and accretive thereafter. Terms of the agreements were not disclosed.
Arrow Industries, Inc. Dresser-Rand Services, LLC has signed an agreement to acquire all of the stock of Arrow Industries, Inc. ("Arrow Industries" or "Arrow"). The agreement is expected to close in late August. Established in 1982, Arrow Industries is a premier provider of foundation and mechanical services for reciprocating engines and compressors used in the North American pipeline industry. With four facilities in the U.S., Arrow is a Dresser-Rand foundation services provider, and is experienced in implementing and servicing Dresser-Rand and similar OEM equipment. In 2007, Arrow reported sales of approximately $30 million. A significant portion of Arrow's sales is derived from servicing equipment from manufacturers other than Dresser-Rand. This diverse servicing expertise supports Dresser-Rand's Applied Technology strategy and will allow it to develop markets that are expected to increase earnings for the company. "Dresser-Rand and Arrow Industries have worked together in the past, and each has decades of experience providing innovative solutions in the energy markets," said Vincent R. Volpe Jr., president and CEO of Dresser-Rand. "Both companies are known for quality, economy, and reliability that bring added value to their clients. The acquisition of Arrow Industries strengthens Dresser-Rand's business and will enhance our ability to better serve the pipeline industry and other markets." Larry Chamberlain, president of Arrow Industries, added, "This is not only a great occasion for Arrow, but also a great opportunity to expand current capabilities and provide clients with the benefits that a small company can offer, backed by the resources and solutions of a leading OEM." Enginuity LLC Dresser-Rand Company also announced the closing of an agreement to acquire the assets of Enginuity LLC ("Enginuity") a private, U.S.-based provider of combustion and catalytic emissions technology solutions, controls and automation, and aftermarket services for reciprocating gas engines used in the gas transmission market. In 2007, Enginuity reported sales of approximately $16 million. Focused on the North American gas transmission market, Enginuity is the technology solutions leader for reducing gas-fired engine emissions and for engine and compressor controls and monitoring. In connection with this acquisition, Dresser-Rand will establish its Gas Engine Technology Center in Fort Collins, Colorado, which has served as Enginuity's headquarters since 1999. "Enginuity will strengthen Dresser-Rand's engine technology position and value proposition in the gas transmission market, and enhance Dresser-Rand's Applied Technology capabilities," said Volpe. "Together, Dresser-Rand and Enginuity expect to play a leading role in the development and deployment of technology solutions to reduce CO2 emissions from compressor systems," he emphasized. "Dresser-Rand represents a strong and well established brand," said Chad Fletcher, founder and CEO of Enginuity. "When combined with Dresser-Rand's highly engineered products and global sales and service capabilities, this brand provides the platform by which Enginuity can realize its vision of 'bringing energy and the environment into harmony.'" Dresser-Rand is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. The Company operates manufacturing facilities in the United States, France, U.K., Germany, Norway, India, and China, and maintains a network of 30 service and support centers covering more than 140 countries. This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements include, without limitation, the Company's plans, objectives, goals, strategies, future events, future revenue, or performance, capital expenditures, financing needs, plans, or intentions relating to acquisitions, business trends, executive compensation, and other information that is not historical information. The words "anticipates," "believes," "expects," "intends," and similar expressions identify such forward-looking statements. Although the Company believes that such statements are based on reasonable assumptions, these forward-looking statements are subject to numerous factors, risks, and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include, among others, the following: potential for material weaknesses in its internal controls; economic or industry downturns; its inability to implement its business strategy to increase aftermarket parts and services revenue; competition in its markets; failure to complete or achieve the expected benefits from any future acquisitions; economic, political, currency and other risks associated with international sales and operations; fluctuations in currencies and volatility in exchange rates; loss of senior management; environmental compliance costs and liabilities; failure to maintain safety performance acceptable to its clients; failure to negotiate new collective bargaining agreements; unexpected product claims and regulations; infringement on its intellectual property or infringement on others' intellectual property; difficulty in implementing an information management system; and the Company's brand name may be confused with others. These and other risks are discussed in detail in the Company's filings with the Securities and Exchange Commission at http://www.sec.gov. Actual results, performance, or achievements could differ materially from those expressed in, or implied by, the forward-looking statements. The Company can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them does, what impact they will have on results of operations and financial condition. The Company undertakes no obligation to update or revise forward-looking statements, which may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. For information about Dresser-Rand, go to its website at http://www.dresser-rand.com. DRC-FIN |
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