Dresser-Rand has signed an agreement to acquire the assets of Turbo Machines Field Services ("TMFS"). Closing is expected to occur in early May 2010.
TMFS is the leading South African non-OEM replacement parts supplier for steam turbine and centrifugal compressor products manufacturing key components such as turbine blades, compressor impellers, bearings and seals. Additionally, TMFS provides engineered solutions for equipment upgrades and field services for critical rotating equipment applications. The company's clients are in the oil, gas, petrochemical, and industrial sectors located primarily in South Africa and the rest of the sub-Saharan market.
"The acquisition is consistent with Dresser-Rand's strategy of core business expansion in key and underserved markets, and provides the Company with a local presence close to major end users and access to an extensive installed base of rotating equipment in sub-Saharan Africa. The Company believes that being local is crucial to developing aftermarket and new unit opportunities," said Luciano Mozzato, Dresser-Rand's executive vice president, Services Worldwide.
Additionally, the acquisition provides Dresser-Rand additional capabilities to expand engineered solutions for the power generation sector and enhance its Applied Technology and Field Services businesses in this key geography. The acquisition is expected to be neutral to earnings in the first year and accretive thereafter.
"TMFS has an excellent reputation in the markets it serves as evidenced by its long-term relationships with major end users. The company has strong manufacturing engineering, applied engineering and metallurgical capabilities focused on providing upgraded turbo-machinery parts that solve operating problems. It strengthens Dresser-Rand's capabilities to service and repair the installed base of rotating equipment in the region," said Nicoletta Giadrossi, Dresser-Rand's vice president and general manager for Europe, Middle East, and Africa. "TMFS is expected to provide us with an excellent platform for modernizing non Dresser-Rand equipment with our latest technology throughout this region. The company has an experienced management team, a reputation for high quality and excellent service, and an impressive record of profitable growth."
Danie Grobler, TMFS' co-founder and Managing Director, added, "We are truly excited about becoming part of a global OEM with the reputation and resources to create opportunities we could not create on our own. We look forward to the added capabilities and offerings we can now bring to clients, and I am confident that the combination of Dresser-Rand and TMFS provides unparalleled value for our clients and opportunities for growth in the region."
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