DAVIDSON, N.C.--(BUSINESS WIRE)--Curtiss-Wright Corporation (NYSE: CW) today announced that it has entered into an agreement to acquire the stock of Dyna-Flo Control Valve Services Ltd. (Dyna-Flo) for CAD$81 million (US$62 million) in cash. Dyna-Flo is a leading designer and manufacturer of linear and rotary control valves, isolation valves, actuators, and level and pressure control systems for the chemical, petrochemical, and oil and gas markets.
The acquired business will operate within Curtiss-Wright's Commercial/Industrial segment and is expected to be accretive to Curtiss-Wright's 2020 adjusted diluted earnings per share, excluding first year purchase accounting costs, and produce a free cash flow conversion rate in excess of 100%. Dyna-Flo’s financials are not included in the Company’s initial 2020 guidance.
“The acquisition of Dyna-Flo yields significant opportunities for growth by increasing the breadth of our industrial valve portfolio with complementary products recognized for their critical performance in severe service environments,” said David C. Adams, Chairman and CEO of Curtiss-Wright Corporation. “The combination of this business with Curtiss-Wright’s established global sales channel and marketing capabilities serving similar customers will ensure that we remain a leading provider of pressure relief, control and isolation valve solutions. In addition, this transaction supports our long-term financial objectives including increased sales growth, margin expansion and solid free cash flow generation.”
Founded in 1993 and headquartered in Edmonton, Alberta, Canada, Dyna-Flo’s core product offering addresses the majority of control valve applications with designs ranging from compact low profile to heavy duty severe service. The complete range of valves have both on/off and throttle control for gas or fluid service and meet the critical industry standards of NACE and ASME B16.34 compliance. Control valves are an integral part of the pressure relief system design, where Curtiss-Wright enjoys a leadership position. Dyna-Flo has approximately 120 employees and is expected to generate sales of approximately CAD$33 million (US$25 million) in fiscal 2020, principally to the general industrial market. The acquisition is expected to close in March 2020.
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE:CW) is a global innovative company that delivers highly engineered, critical function products and services to the commercial, industrial, defense and energy markets. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing reliable solutions through trusted customer relationships. The company employs approximately 9,100 people worldwide. For more information, visit www.curtisswright.com.
This press release contains forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 that are based on management's beliefs and assumptions. Such statements, including statements relating to Curtiss-Wright Corporation's expectations for future opportunities associated with the acquisition, the 2020 financial forecast for Dyna-Flo, the success of transferring Dyna-Flo’s technology throughout our existing world-wide network, and the success of the Company integrating Dyna-Flo into its Commercial/Industrial segment are not considered historical facts and are considered forward-looking statements under the federal securities laws. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to: a reduction in anticipated orders; an economic downturn; changes in competitive marketplace and/or customer requirements; a change in US government spending; an inability to perform customer contracts at anticipated cost levels; and other factors that generally affect the business of aerospace, defense contracting, marine, electronics and industrial companies. Please refer to the Company's current SEC filings under the Securities Exchange Act of 1934, as amended, for further information.