Tag Archives: valves

Wajax to grow ERS and industrial parts businesses with Tundra Process buy

Wajax has entered into a definitive agreement to acquire all of the issued and outstanding shares of Calgary, Alberta-based Tundra Process Solutions in a cash and shares deal worth C$99.1 million ($78.2 million).

The transaction is expected to close early in the March quarter and is subject to customary closing conditions, Wajax said.

Founded in 1999, Tundra provides maintenance and technical services to customers in the western Canadian midstream oil and gas, oil sands, petrochemical, mining, forestry and municipal sectors. It also distributes a diverse range of industrial process equipment, representing manufacturers of valves and actuators, instrumentation and controls, motors and drives, control buildings, boilers and water treatment solutions.

Employing around 150 people, Tundra operates four facilities in Alberta: Calgary, Edmonton (two locations) and Grande Prairie. Tundra also maintains a local sales presence in Fort McMurray and Red Deer, Alberta; Vancouver and Fort St. John, British Columbia; and southern Saskatchewan.

Wajax said the acquisition of Tundra was expected to provide meaningful growth in the corporation’s Engineered Repair Services (ERS) and industrial parts categories, with its operations complementary to Wajax’s existing ERS and industrial parts businesses.

For the 12 months ended November 30, 2020, Tundra had revenues of about C$147.8 million.

Mark Foote, President and Chief Executive Officer of Wajax, said: “Tundra’s market leadership in process control provides Wajax with meaningful scale in ERS and related industrial parts in western Canada. In central and eastern Canada, Tundra’s technical capabilities and product and service range will provide new opportunities to further extend Wajax’s ERS services to our customers.

“Our complementary cultures of safety, customer service and product and service innovation translates into growth driven by a consistent vision of constantly increasing what we can do for our customers.”

Iggy Domagalski, Chief Executive Officer of Tundra, added: “Partnering with Wajax allows us to instantly grow our volumes by leveraging our combined customer relationships and branch networks. Existing Wajax customers will benefit from a broader range of valve, instrumentation and electrical products and services, and existing Tundra customers will benefit from Wajax’s extensive ERS portfolio and geographic footprint.

“We are excited to join Wajax and contribute to the goal of becoming Canada’s leading ERS provider.”

Alfa Laval targets industrial flow control market with Neles bid

Less than two weeks into being a public entity, Neles has become the subject of a friendly takeover offer from Alfa Laval AB.

The two have entered into a combination agreement pursuant to which Alfa Laval will make a voluntary recommended public cash tender offer for all issued and outstanding shares in Neles that are not held by Neles or any of its subsidiaries, the two companies said.

The €11.50/share ($13/share) all-cash bid values Neles at around €1.7 billion, which is a 32.8% premium to the closing Neles share price on July 10.

Alfa Laval, a leading global provider of products and solutions based on its key technologies of heat transfer, separation and fluid handling, has identified the industrial flow control market as a key growth area, it said. The planned transaction enables it to considerably strengthen its presence in the large industrial flow control space where the company currently offers mainly energy efficiency solutions, they said.

“On the other hand, Alfa Laval believes there are several areas where being part of the Alfa Laval Group can make a significant contribution to the future development of Neles, such as leveraging Alfa Laval’s existing global platform,” it said.

Some of Alfa Laval’s products are used in the engineering sector, mining industry and refinery sector, treating wastewater and in creating a comfortable indoor climate.

Neles, which began trading on the Helsinki Stock Exchange on July 1 as part of Metso’s partial demerger and merger with Outotec, is a global leader in flow control solutions and services. The company’s valves and valve automation technologies are known for quality, reliability and highest safety, it says.

The members of the Board of Directors of Neles who participated in the decision-making process have unanimously decided to recommend the shareholders of Neles accept the tender offer, while Cevian Capital, which holds some 10.9% of the issued and outstanding shares in Neles, has on customary conditions irrevocably undertaken to accept the offer.

Alfa Laval will on or about August 13, 2020, publish a tender offer document with detailed information about the tender offer and information on how to accept it. The offer period is expected to commence on or about this date and to expire on or about October 22, 2020, unless the offer period is extended by Alfa Laval.

“Neles and Alfa Laval would create a larger and stronger global player in the flow control market,” they said. “As a combined company, Neles would become an integral part of Alfa Laval’s organisation structure while largely retaining its operational structure and strong identity within the Alfa Laval network.”

The combined company’s combined revenue for the 12 months ended March 31, 2020, was approximately SEK53.8 billion ($5.9 billion) and it had a combined total of some 20,300 employees globally on March 31, 2020.

“The transaction is expected to be earnings per share accretive for Alfa Laval beginning from the first year following the completion of the tender offer,” they said.

There are several areas where being part of the Alfa Laval Group can make a significant contribution to the future development of Neles, Alfa Laval says, with certain strategic opportunities including:

  • Leveraging Alfa Laval’s service network infrastructure of around 100 service centres globally;
  • Leveraging Alfa Laval’s automated warehouse presence in North America, Europe, and Asia in Neles’ global parts distribution. The set-up is well suited to Neles’ product range and can provide a world-class solution in the industrial flow market, it says; and
  • Acquisition growth: Alfa Laval has a long history of successful M&A transactions and the financial strength to support a meaningful acquisition program in the industrial flow market.

Commenting on the offer, Tom Erixon, President and CEO of Alfa Laval, said: “The proposed deal offers a strong industrial logic: our businesses complement each other well with very little overlapping operations. Alfa Laval has the resources to invest in and support the development of Neles for years to come, while our global service network offers Neles a ‘plug and play’-kind of platform. As an owner, Alfa Laval would be committed to the strategy and industrial plan of Neles while offering a powerful platform to enable future growth. The match is nearly perfect.”

Olli Isotalo, President and CEO of Neles, said: “We see this offer as clear evidence of the good, strong work done throughout the years. It means that Alfa Laval believes in and appreciates our strategy, products and, most of all, know-how of our people. We continue to be serving our customers and executing our strategy and are delighted to hear that Alfa Laval would support our endeavours.”

New Weir Minerals Sand Wash Plant to boost recoveries

Weir Minerals has released a complete sand wash solution that draws on its long experience in the sand and aggregate industry.

The Weir Minerals Sand Wash Plant comes with Linatex® lining, produces more saleable product than conventional sand screw plants, with fewer moving parts, and has an optimised process that produces a drier, higher-quality product with less fines, according to the company.

The solution has already proven effective at sites like Coimbatore Minerals in Tamil Nadu, India, Weir says, where a custom-built wash plant reduced its total cost of ownership by 51%, while offering a 23% reduction in fines that helped the company consistently meet the industry’s high standards for a saleable product.

Bruce Cooke, Global Product Manager – Sand Wash Plants for Weir, said: “We know the most important thing for quarry operators in washing is recovering as much sand as possible to maximise their sales, which is why we’ve designed an integrated solution for washing their product, with a hydrocyclone which can deliver greater recovery than sand screws. In addition, every component has been selected by our expert engineers for its long-service life, interoperability and ease of maintenance.”

The compact solution features a range of Weir Minerals equipment designed for high efficiency in sand and aggregate applications, including Warman® WGR pumps, Cavex® hydrocyclones, Enduron® dewatering screens, Linatex hoses and Isogate® knife gate valves.

The Warman WGR is a popular pump in the sand extraction industry, according to Weir, combining top of the line hydraulic design with an adjustable impeller, long bearing life and a simplified wet end, making replacement predictable and cost effective.

Precision moulded and lined, Linatex premium rubber is used for wear zones throughout the plant due to its proven wear performance in wet sand applications in operations around the world, Weir said.

Cavex hydrocyclones provide “exceptional classification efficiency” thanks to their unique 360° laminar spiral, delivering more saleable product than a sand screw solution would, the company said. Enduron dewatering screens, meanwhile, reliably separate product with a high degree of efficiency. And, finally, Isogate knife gate valves contribute to the plant’s straightforward maintenance.

Surendra Menon, President, Weir Minerals India, said: “For the new sand wash plant, we focused on making it quick and easy for quarry operators to get up and running. Its straightforward design means it can be assembled in just two days while its compact skids make it easy to drag into any operation.

“Efficient, reliable and easily integrated into flowsheets, we think the plant is a game changer for quarry owners.”

DeZURIK opens new facility to service Alberta oil sands industry

DeZURIK Inc has opened a new 15,000 sq.ft (4,572 sq.m) Rapid Fulfillment and Service Centre in Leduc, Alberta, Canada, to meet the needs of oil sands mining industry in the region.

The centre will inventory a variety of valves, actuators and accessories required to meet the needs of the oil sands sector, as well offer full repair and rebuild services for DeZURIK products, it said.

Bryan Burns, President and Chief Executive Officer of DeZURIK Inc, said: “We are very pleased to be able to provide next-level service to our customers in the Alberta province. Our mission is to apply our exceptional flow control expertise to the development of vital industrial infrastructure, and the opening of this Rapid Fulfillment Centre is an additional way we can meet the needs of our customers through expedited delivery.”

DeZURIK’s Director of Mining, Steve Clauson, said DeZURIK has provided “superior performing” valve solutions to the oil sands market for decades and this new centre will house inventory and provide repairs to further improve its service for the oil sands market.

DeZURIK valves are applied on slurries, oil sands, process fluids, corrosive media/acids, steam, water, air and dry solids applications, with popular valve styles including the ASME Class Severe Service Knife Gate Valve, Urethane Lined Knife Gate Valve and the Extended Service Knife Gate Valve.

In addition, DeZURIK also manufactures eccentric plug valves, high performance butterfly valves, resilient seated butterfly valves, rotary control valves, rubber flapper check valves, and air valves.

Future Neles valves business bolsters service strength in Portugal, France

Metso’s valve business – to be renamed Neles Corp after a partial demerger – has strengthened its valves service availability with new service centres in Portugal and France.

The company will establish two new facilities in Lisbon, Portugal, and in the Mulhouse area, France, to increase its valves’ service availability and improve its customer presence, it said. These service centres will offer valve repair services as well as predictive maintenance services, eg digitalised process diagnostic services and shutdown planning, to help customers to increase their plant reliability, it said.

Timo Hänninen, Vice President of Valve Services at Metso, said: “We are constantly developing our operations to fulfil our customers’ needs. We have a comprehensive service portfolio, ranging from genuine quality parts to complex shutdown solutions. We want to be a reliability partner by helping our customers to reduce the risks of valve failure and expensive unplanned shutdowns.”

The service centre in Portugal was opened during the September quarter of 2019, with the France facility planned to open in the June quarter of 2020.

Neles currently has 40 service sites in more than 20 countries.

“Our valve services experts are involved in more than 150 large-size shutdowns globally every year, and today we have more than 100 valve service agreements with our customers,” Hänninen says.

Neles Corp is planned to be created in a partial demerger of Metso, in which Metso’s Flow Control business would become the independent Neles. Simultaneously, Metso’s Minerals Business would combine with Outotec to create Metso Outotec.

The partial demerger is targeted to be completed in the June quarter of 2020, subject to the receipt of all required regulatory and other approvals. The Extraordinary General Meetings of both Metso and Outotec approved the transaction on October 29, 2019.

MOGAS expands mining and mineral processing offering with Brenco acquisition

MOGAS Industries says it has completed the acquisition of Brenco Group, an Australia-based provider of surface coating and engineering processes.

The purchase will extend MOGAS’ capabilities in surface technologies, while strengthening investment in the Australasian markets to serve the needs of customers in the region, MOGAS said, adding that Brenco Group will now be referred to as Brenco, a division of MOGAS.

Brenco’s Surface Engineering divisions deliver engineering and coating expertise to the mining and mineral processing, drilling and exploration and oil & gas, and general processing industry.

MOGAS Industries, meanwhile, provides application-specific products for critical valve applications in power, mining, oil & gas, refining, chemical/petrochemical, pulp & paper and specialty industries. This includes applications in high pressure acid leaching and pressure oxidation operations.

Matt Mogas, President and CEO at MOGAS Industries, said: “This acquisition allows MOGAS to bring the next generation of patented laser cladding technology in-house. It also allows MOGAS to expand its advanced coating, welding, cladding and material testing technologies to serve a range of customers in the region, especially those in autoclave, mining, minerals processing, oil & gas and aerospace industries.”

Quyen Tran, Director at Brenco, said the sale of the company means Brenco is “better positioned for growth”.

First Reserve becomes new owner of Weir’s Flow Control division

The Weir Group says it has completed the sale of its Flow Control division to First Reserve for an enterprise value of £275 million ($343 million).

The deal, which was first announced on February 25, completed on June 28, the company confirmed.

The Flow Control division primarily provides highly engineered pumps, valves and other solutions used in power, industrial and downstream oil and gas applications, according to Weir.

Back in February, the company said the sale would effectively strengthen its mining and oil & gas ties: “Once this transaction completes, on a pro forma basis, more than 80% of Weir’s revenues will be from attractive aftermarket-intensive mining and upstream oil and gas markets.”

Weir Group CEO, Jon Stanton, said: “The sale of the Flow Control division marks an important step in successfully delivering our strategy. It means Weir is now a more focused business with strong positions in premium upstream mining and oil and gas markets around the world.”

The £275 million enterprise value price is subject to customary working capital and debt-like adjustments, Weir clarified.

Metso splits Flow Control and Minerals business

Metso says it has decided to develop the businesses of the Minerals and Flow Control segments separately, with the latter business area appointing Olli Isotalo as President.

Metso’s Board of Directors said it had defined its view on the company’s portfolio strategy and decided that the businesses under the Minerals and Flow Control segments will be further developed separately from each other, the company said.

”All Metso’s businesses and the two segments that are composed of these, have attractive growth opportunities in the coming years,” Metso’s President and CEO, Pekka Vauramo, said. “Capitalising on these opportunities will call for efficient decision-making and allocation of resources.

“However, our businesses have significant differences relating to, for example, customers, cyclicality, growth drivers, sales channels and product development. This is why we made the decision to develop Minerals and Flow Control strategies separately from each other.

“In addition, Minerals and Flow Control share a limited amount of synergies, the majority of which are administrative, thus the separation will make the preparation and implementation of their respective strategies more efficient.”

The Minerals segment includes equipment and services sold to mining and aggregates customers, as well as the recycling business. The Flow Control segment consists of valves and related services sold to various process industries.

The new President of the Valves business area, Olli Isotalo, will come on board on July 15, Metso said. He will also become a member of the Metso Executive Team.

Isatalo has previously served as CEO of Patria Oyj and has held various executive positions at Cargotec Corp, Metso said.

Vauramo said: “I am very pleased that we can utilise Olli Isotalo’s expertise and experience in preparing and further implementing the strategy of the Valves business.”

Isatalo said: “I am excited to join the Valves business area, which has consistently reported good results and has seen overall strong development over the past years. I eagerly look forward to developing a new strategy and creating new growth opportunities for Valves together with its skilled and motivated personnel.”

John Quinlivan, the current President of the Valves business area, will continue as Senior Adviser until the end of 2019 and will support Olli Isotalo during the transition period, Metso said.

Metso Minerals division expands with incorporation of Pumps business area

Metso says it is looking to better support the common customer interface and growth plans of its Pumps business area by moving it into its Minerals division.

Previously, Pumps was reported under the Flow Control segment together with Valves. Metso said it will continue to report externally under the two segments, Minerals and Flow Control, and will run its operations through seven business areas grouped under these two segments.

“The majority of Metso’s Pumps business area’s customers are common to the Minerals segment, and sales already largely operate through the Minerals market area structure,” Metso said. The Pumps business area will now be headed by Mikko Keto, who acts also as President of Metso’s Minerals Services business area, while John Quinlivan will continue as President of the Valves business area.

The change is effective immediately, with Pumps to be reported under the Minerals segment as of January 1.

Metso breaks ground on new valve technology centre in China

Just over two months since announcing the decision to invest in a new greenfield valve technology centre in Jiaxing, China, Metso has officially broken ground on the plant.

The centre will start operations in spring 2020 and serve the local and global markets, according to the company.

Kevin Tinsley, Senior Vice President for Valve Operations at Metso, said this week at the groundbreaking ceremony: “This is an exciting day for both Metso and our valve customers in various process industries globally – we are investing in improving service and delivery capabilities for them. China is an extremely significant market for our valve business, and the new technology centre will have a strong role.”

The new location is designed for a total of 400 valve technology employees, and the focus is on producing high-volume standard products and parts for all Metso’s valve plants. Metso’s technology centre in the Waigaoqiao Free Trade Zone in Shanghai is continuing its operations, with a focus on highly engineered products, the company said.

Metso has valve technology or production centres in several locations around the world including China, North America, Brazil, Germany, Finland, South Korea and India. The company employs more than 1,100 people at seven locations in China, serving all customer industries.