Company Plans to Use Net Proceeds to Pay Down Debt
CIRCOR International, Inc. (NYSE: CIR), a leading provider of severe service flow control solutions and other highly engineered products for markets including industrial, aerospace, defense, and energy, today announced it has completed the sale of its Instrumentation & Sampling business ("I&S") to Crane Co. (NYSE: CR) for $172 million in cash, subject to a working capital adjustment.
"During the past 12 months, we have completed over $340 million of non-core asset sales, allowing us to significantly reduce debt," stated Scott Buckhout, President & Chief Executive Officer of CIRCOR International. "These asset sales, coupled with our strategic shift away from upstream oil & gas, position CIRCOR for continued success and advance our strategy to simplify the Company, sharpen our focus on core mission-critical flow control platforms, and further reduce leverage."
I&S historically generated approximately $80 million in annual revenue with operating income margins of approximately 19%. I&S manufactures valves, fittings, regulators, and sampling systems, primarily serving energy end markets.
About CIRCOR International, Inc.
CIRCOR International, Inc. designs, manufactures, and markets highly engineered products and sub-systems for markets including Industrial, Aerospace & Defense, and Energy. CIRCOR has a diversified product portfolio with recognized, market-leading brands that fulfill its customers’ unique application needs. For more information, visit the Company’s investor relations website at http://investors.circor.com, where we routinely post information that may be important to investors.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which are, in some cases, beyond the control of CIRCOR. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, the expected use of cash from the proceeds of the sale of the Instrumentation & Sampling business and the ability of the Company to sharpen focus on its core mission-critical flow control platforms and further improve leverage. Actual events, performance or results could differ materially from the anticipated events, performance or results expressed or implied by such forward-looking statements. Important factors that could cause actual results to vary from expectations include, but are not limited to: any required post-closing adjustments to the purchase price; our ability to respond to competitive developments and to grow our business, both domestically and internationally; changes in the cost, quality or supply of raw materials; our ability to comply with our debt obligations; our ability to successfully implement our acquisition, divesture or restructuring strategies, including our integration of the Fluid Handling business; changes in industry standards or government regulations, both in the United States and internationally; and our ability to operate our manufacturing facilities at current or higher levels and respond to increases in manufacturing costs. BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K AND SUBSEQUENT QUARTERLY REPORTS ON FORM 10-Q, WHICH CAN BE ACCESSED UNDER THE "INVESTORS" LINK OF OUR WEBSITE AT WWW.CIRCOR.COM. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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CIRCOR International, Inc.
David F. Mullen, Senior Vice President