Hamworthy has acquired 100 per cent of the issued share capital of AW Flow Holdings Limited ("AW Flow") and its subsidiary undertakings, a UK based specialist valve manufacturer for the oil and gas sector.
The consideration is £24 million on a debt free/cash free basis, funded entirely from Hamworthy's own cash reserves. £21.6 million was paid on completion with a further £2.4 million of deferred consideration payable over the next two years.
In the year to 31 October 2010 AW Flow had revenue of £20.2 million and pre-tax profit of £4.6 million in respect of its continuing businesses. Consolidated net assets at 31 October 2010 were £14.2 million of which £9.0 million was subsequently distributed by way of net dividend. The business employs 141 people.
AW Flow includes the well-known brands of Shipham Valves, Leeds Valve, John Mills Valves and Robert Cort. Its range of valves are highly complementary to Hamworthy's existing pump range and the acquired business will be merged with the Group's Pumps Systems business to form a new division, Hamworthy Flow Solutions.
Commenting on the acquisition, Joe Oatley, Chief Executive of Hamworthy, said: "The acquisition expands Hamworthy's position and scope in the oil and gas market, in particular for offshore applications, as well as access to the down-stream terminals and refinery markets. AW Flow's product and market expertise will complement Hamworthy's financial, technical and global sales resources."