Curtiss-Wright Corporation has entered into an agreement to acquire the stock of Dyna-Flo Control Valve Services for $62 million in cash to enhance growth and broaden its industrial valve portfolio, Curtiss-Wright announced on Thursday.
Dyna-Flo is a leading designer and manufacturer of linear and rotary control valves, isolation valves, actuators, and level and pressure control systems for the chemical, petrochemical, and oil and gas markets.
“The combination of this business with Curtiss-Wright’s established global sales channel and marketing capabilities serving similar customers will ensure that we remain a leading provider of pressure relief, control and isolation valve solutions…supports our long-term financial objectives including increased sales growth, margin expansion and solid free cash flow generation,” said David C. Adams, chairman and CEO of Curtiss-Wright Corporation.
Dyna-Flow will operate within Curtiss-Wright's Commercial/Industrial segment and is expected to be accretive to Curtiss-Wright's 2020 adjusted diluted earnings per share, excluding first year purchase accounting costs, and produce a free cash flow conversion rate in excess of 100%. Dyna-Flo’s financials are not included in the Company’s initial 2020 guidance.
“The acquisition of Dyna-Flo yields significant opportunities for growth by increasing the breadth of our industrial valve portfolio with complementary products recognized for their critical performance in severe service environments,” added Adams.
With the addition of Dyna-Flo, Curtiss-Wright will grow the company’s revenue and service offerings. It will also enhance the company’s partnership, contracts and innovations, like its Aug. 2019 demonstration of its integrated vehicle network management.
Curtiss-Wright’s defense solutions unit and Pacific Star Communications partnered to demonstrate a system designed to manage electronic components of vehicles. PacStar will provide its IQ-Core network management software that will run on Curtiss-Wright’s mission computers to manage groups of ground vehicles.
In addition, the software-computer combination will provide a consolidated management dashboard to support control and system awareness of U.S. Marine Corps and U.S. Army ground vehicles.
About Curtiss-Wright Corporation
Curtiss-Wright Corporation (NYSE:CW) is a global innovative company that delivers highly engineered, critical function products and services to the commercial, industrial, defense and energy markets. Building on the heritage of Glenn Curtiss and the Wright brothers, Curtiss-Wright has a long tradition of providing reliable solutions through trusted customer relationships. The company employs approximately 9,100 people worldwide.