Circor Flow Technologies India Pvt Ltd, the wholly owned subsidiary of Circor International Inc, has acquired the valves division of India’s Mazda Ltd for an undisclosed sum. Mazda is an engineering company and manufactures severe service control valves and vacuum systems.
Following this deal, Circor plans to integrate the Mazda unit with its Flow Technologies segment, said a company statement. Circor has made an all-cash transaction for the deal.
Circor anticipates that the acquisition will be accretive to earnings on a GAAP basis in the first 12 months of combined operations. In the 12 months prior to the acquisition, Mazda's valves division generated revenues of around $3.2 million (about Rs 15 crore), the statement added.
Circor has incorporated its India unit over a year ago, and has been steadily building its engineering, sourcing and sales activities. Globally, it has operations in over 100 countries, and is primarily engaged in aerospace, energy and industrial markets. The company has been strategically expanding its portfolio by acquiring mission-critical subsystems and solutions.
Bill Higgins, chairman and CEO, Circor, said, in the statement, “The acquisition provides us with greater access to the steadily growing Indian power generation industry and broadens our product offering with a suite of severe service control valves. The acquisition is part of our strategy to expanding in the emerging markets.”
Post its exit from valves business, Mazda is left with three other business units such as vacuum systems, evaporator and food division. The shares of the company were traded at Rs 124.40, up by Rs 11.85 or 10.53% at 3:25 pm in the BSE. The net sales and net profit of the company in FY10 were Rs 85.26 crore and Rs 9.96 crore, respectively.