New York-headquartered manufacturing company ITT has agreed to acquire Rheinhütte Pumpen Group, a manufacturer of centrifugal and axial flow pumps, from Aliaxis Group.
ITT stated that the deal is in-line with its growth initiatives across target markets and could enhance its industrial process (IP) segment’s strategy with a complementary portfolio of centrifugal pump technologies suited for corrosive, abrasive and high-temperature industrial process environments.
Rheinhütte is a German company, headquartered in Wiesbaden. It has 160-year history and is touted to be a major provider of highly engineered pumps that can handle aggressive media. Rheinhütte pumping solutions are used across several industries including chemical, mining, renewable energy and refinery processes.
The company’s revenue is estimated to come around $66m for 2018. It has a workforce of 430 employees and operates three main manufacturing locations.
ITT CEO and president Luca Savi said: “The proposed agreement will bring together two companies with long legacies of application expertise across a range of harsh conditions in the industrial process space. We look forward to leveraging Rheinhütte’s deep engineering capabilities to deliver better solutions for our customers and unlock additional growth in key global markets.”
The transaction could be closed in the second quarter of this year, subject to customary closing conditions, including regulatory approvals.
ITT IP president David Malinas said: “This agreement reflects our commitment to delivering a comprehensive value proposition to our customers. The addition of the Rheinhütte Pumpen brand to our current portfolio will broaden our worldwide pump presence. We are excited to join these two teams, leveraging their shared skills and commitment to delivering excellent products for our customers and partners.”
ITT intends to fund the transaction amount of nearly $91.5 million from its cash holdings and revolving credit facility. The final acquisition price is subject to customary net working capital adjustments.
Last September, ITT showcased new products and services for oil and gas and petrochemical at the Turbomachinery & International Pump Users Symposia in Houston, Texas.
It launched the Bornemann MPC multiphase pump simulator, the PumpSmart flow control system and new i-ALERT2 v3 sensor and pressure sensor that offers continuous machine monitoring.