Divestiture Positions Company to Operate as UHP Pump Pure-Play
KENT, Wash., Oct. 3 /PRNewswire-FirstCall/ -- Flow International
Corporation (Nasdaq: FLOWE), the world's leading supplier of
ultrahigh-pressure waterjet products, today announced that it has entered into
an agreement to divest all assets of its wholly owned Avure Technologies Inc.,
including the General Press operations, which consist of the North America
Press and the International Press segments, as well as the
non-ultrahigh-pressure portion of the food business, which is included in
Avure's Fresher Under Pressure(R) food segment. The businesses will be
acquired by an affiliate of Gores Technology Group, LLC, a Los Angeles-based
private equity firm, for aggregate consideration of $15.3 million. As part of
the agreement, FLOW will maintain a commercial relationship with the Gores
affiliate to build on Avure's leading position in the design and manufacture
of advanced high-pressure presses for the food industry. The sale is expected
to close by the end of November.
Specifically, the Gores affiliate will acquire Avure Technologies
Incorporated, Avure Technologies AB, Flow International FPS AB, and assets of
Flow Holding Sagl, which are all wholly owned subsidiaries of Flow
International Corporation. Also included in the transaction is FLOW's 51%
interest in a joint venture with Snap-tite, which is called Flow Autoclave
Systems. Avure is the market leader in the development of wire wound,
high-pressure presses. Under the brand name Quintus Industrial Presses, Avure
has been providing industrial presses for more than 30 years and has delivered
more than 1,500 systems worldwide to customers including Ford and Boeing.
Avure Technologies specializes in the manufacturing of high-pressure presses
for the food industries.
"This transaction largely completes our strategy to divest ourselves of
operations that are not part of our core ultra-high-pressure water pump
business," said Stephen R. Light, FLOW's President and Chief Executive
Officer. "We are pleased to have found a buyer with the qualifications and
experience of Gores Technology and look forward to working with them to
support the press and food system businesses with our waterpumps and
aftermarket spares and replacement parts."
Pat Adams, President and CEO of Avure Technologies Inc., commented, "We
are excited to join the Gores portfolio of companies. Gores provides the
strategic and operational expertise that will enable Avure to leverage our
decades of expertise into emerging market applications. We believe that there
is tremendous growth potential for high-pressure presses in the food and
industrial markets. With Gores' assistance we will now have the ability to
focus on our core technology and significantly expand the utilization of
pressure."
Steve Yager, President of Mergers & Acquisitions at Gores, added, "The
Avure acquisition represents an excellent opportunity for Gores. Avure is the
world's leading developer and supplier of high-pressure presses and is also
very well positioned to capitalize on the future growth of high-pressure
presses for the food industry. Gores plans to work together with management
to maintain the company's pre-eminent position and also provide the support
required to explore new growth opportunities for the business."
Nadim M. Nsouli, who led the transaction and is Gores' European Head,
said, "This acquisition fits well with Gores' strategy and further expands
Gores' portfolio in Europe."
About Flow International
Flow International Corporation is the world's leading developer and
manufacturer of ultrahigh-pressure waterjet technology for cutting, cleaning,
and food safety applications, providing state-of-the-art ultrahigh-pressure
(UHP) technology to industries including automotive, aerospace, job shop,
surface preparation, food and more. For more information, visit
http://www.flowcorp.com.
About Gores Technology Group, LLC
Founded in 1987, Gores is a private equity firm focused on special
situations across industries with particular expertise in the technology,
telecommunications, and business services sectors. The firm combines the
seasoned M&A team of a traditional financial buyer with the operational
expertise and detailed due diligence capabilities of a strategic buyer. Gores
has a long standing record of creating sustainable value in its portfolio
companies by focusing on customers and employees, supporting management with
operational expertise and providing the capital required for growth.
Headquartered in Los Angeles, California, Gores maintains offices in Boulder,
Colorado; New York; Zurich; and London. http://www.gores.com
This press release contains forward-looking statements relating to future
events or future financial performance that involve risks and uncertainties.
The words "believe," "expect," "intend," "anticipate," variations of such
words and similar expressions identify forward-looking statements but their
absence does not mean that the statement is not forward-looking. These
statements are only predictions and actual results could differ materially
from those anticipated in these statements based on a number of risk factors,
including those set forth in the April 30, 2005 Flow International Corporation
Form 10-K Report filed with the Securities and Exchange Commission. Readers
are cautioned not to place undue reliance on these forward-looking statements
that speak only as of the date of this announcement.
Contact: John Leness
General Counsel
253-850-3500
SOURCE Flow International Corporation
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Related links:
http://www.flowcorp.com
CONTACT:
John Leness, General Counsel of Flow
International Corporation, +1-253-850-3500
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