Alfa Laval Buys Norwegian Pump Maker Frank Mohn for $2.2 Billion
Alfa Laval AB (ALFA) agreed to buy Norwegian pumpmaker Frank Mohn AS for 13 billion kroner ($2.2 billion) in cash to capture spending in offshore oil and gas drilling.
The transaction will add sales of 3.4 billion kroner from its submerged pumping systems and an order intake of 13 billion kroner, with no dilution in margins, the Lund, Sweden-based company said in a statement today.
“Frank Mohn is an excellent company that we have been following closely for several years,” Alfa Laval Chief Executive Officer Lars Renstrom said in the statement today.
Renstrom has earmarked the marine and offshore oil and gas markets as a strategic area of growth, to supplement its offering to industrial, food and medical clients.
Alfa Laval will fund the purchase via existing credit facilities and a bridge loan, taking the net debt to earnings ratio to 2.5 times. The Swedish company is expecting to get 120 million kroner in integration savings.
(By Andrew Noel)
Source: bloomberg
