Flowserve Seals $290M Deal For MOGAS Industries, Enhancing Its Mining And Process Industry Offerings
Portfolio Pulse from Akanksha Bakshi
Flowserve Corporation (NYSE:FLS) has announced a $290 million acquisition of MOGAS Industries, a provider of severe service valves. The deal includes a potential $15 million earnout and is expected to enhance Flowserve's offerings in the mining and process industries. MOGAS is anticipated to contribute approximately $200 million in revenues with high teen adjusted EBITDA margins. The acquisition is expected to be accretive to Flowserve’s adjusted EPS in the first full year and to close in Q4 2024. Flowserve expects at least $15 million in cost synergies within two years.
August 13, 2024 | 2:00 pm
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Flowserve Corporation (NYSE:FLS) is acquiring MOGAS Industries for $290 million, enhancing its offerings in the mining and process industries. The acquisition is expected to be accretive to Flowserve’s adjusted EPS in the first full year and to close in Q4 2024. Flowserve anticipates at least $15 million in cost synergies within two years.
The acquisition of MOGAS Industries is a significant strategic move for Flowserve, enhancing its product offerings and market presence in the mining and process industries. The deal is expected to be accretive to earnings and generate cost synergies, which are positive indicators for the stock price in the short term.
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