ITT Corp., a global engineering and manufacturing company and a leader in the transport and treatment of water and wastewater, last week agreed to purchase privately held Godwin Pumps from its principal shareholders for $585 million. Godwin is a leading supplier of automatic self-priming portable pumps used in the growing markets for drainage pump rental, services and sales serving the global industrial, construction, mining, municipal, oil and gas segments.
The transaction is expected to close in the third quarter of 2010, pending customary regulatory approvals.
“This acquisition is another example of ITT’s strategy to expand our core businesses and build on our strong global positions in water, wastewater and industrial process,” said Gretchen McClain, president of ITT’s Fluid and Motion Control group. “Godwin’s business is a great complement to our existing fluid technology portfolio, and is expected to establish ITT among the leaders in the growing and profitable $3 billion global market for dewatering pumps and rental services.”
Godwin Pumps is based in Bridgeport, N.J., and has about 800 employees located throughout the United States and at its manufacturing facility in Gloucestershire, England. The company operates a U.S. rental fleet of more than 6,000 pumps at 26 equipment rental facilities and a network of approximately 50 distributors worldwide. Godwin’s 2009 revenues were approximately $200 million, with full-year 2010 revenue projected to be about $235 million. When combined with ITT’s existing dewatering sales, the Godwin acquisition is expected to double ITT’s revenues from dewatering equipment and services.
Godwin is known for its service capabilities in dewatering and the original Dri-Prime pump, an automatic self-priming centrifugal pump range capable of handling industrial sludges, oil, sewage, storm water, mine dewatering and other pumping needs. Upon closing of the acquisition, Godwin will become part of ITT’s $1.6 billion Water & Wastewater business.
“The acquisition presents a tremendous opportunity for ITT to grow its dewatering rental and services business internationally,” said John Williamson, president of ITT’s Water & Wastewater business. “We already have a solid history of partnership, with Godwin offering ITT’s electric submersible pumps since 2003. Adding the specialized products and skills of the world-class Godwin team to ITT’s broad Flygt and Grindex submersible pump portfolio and global sales network means our customers will have unsurpassed access to the broadest dewatering capabilities on the market.”
Godwin Pumps, founded by the late John Paz Jr., began as an offshoot of the Paz Brothers Construction Co. in the 1970s. Current CEO John Michael Paz joined the business in 1978 and became president in 1985. He was instrumental in growing the company’s rental business.
ITT sells Flygt and Grindex brand dewatering pumps, and rents from its fleet of more than 11,000 pumps, through its global sales and distribution network serving customers in more than 140 countries.
ITT expects the transaction to be accretive to its 2011 earnings per share, and dilutive to its current-year earnings by an estimated three to five cents per share, reflecting the purchase accounting treatment and transaction fees.
Headquartered in White Plains, N.Y., ITT Corp. generated 2009 revenue of $10.9 billion.