DALLAS, June 21, 2001 (PRIMEZONE) -- Dresser, Inc. today announced it has completed the acquisition of Entech Industries, Inc., a valve manufacturer with operations based in four west European countries, for $70 million. Entech consists of five business units engaged in the design, manufacture and distribution of valves engineered for the oil & gas production and transmission, petrochemical and power industries. The Entech business lines will be merged into Dresser's Flow Control segment. Entech was owned by First Reserve Corporation, an investor and equity partner in Dresser, Inc.
Patrick M. Murray, president and chief executive officer of Dresser, said, "We believe Entech is a perfect strategic fit for Dresser. It expands the product offering of our Flow Control segment and provides a great opportunity to penetrate certain high-growth markets such as deep water, subsea and other severe service applications in the exploration and production industry through its proprietary engineering technology. Conversely, Dresser's broad sales and distribution network will provide new geographic exposure and revenue opportunities for the Entech product line."
Entech's valve products are designed and manufactured in the United Kingdom, Holland, Italy and Germany, and marketed under the Ring-O Valve, Control Seal, EDG, IVL, Meer, WWP, Valcontrol and LVF brands.
The $70 million purchase price consisted of $25 million in cash, $17 million in assumed Entech debt, and $28 million in Dresser equity, subject to a post-closing adjustment for changes in working capital. The cash portion was funded with existing Dresser cash resources and no additional borrowing was required.
Headquartered in Dallas, Dresser, Inc. is a worldwide leader in the design, manufacture and marketing of highly engineered equipment and services sold primarily to customers in the flow control, measurement systems, and power systems segments of the energy industry. Dresser has a widely distributed global presence, with more than 8,500 employees and a sales presence in more than 100 countries worldwide. The company's Website can be accessed at www.dresser.com.
Ring-O Valve, Control Seal, EDG, IVL, Meer, WWP, Valcontrol and LVF are trademarks of Dresser, Inc.
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