27-02-2020

Curtiss-Wright to acquire Dyna-Flo Control Valve Services

Curtiss-Wright Corporation today announced that it has entered into an agreement to acquire the stock of Dyna-Flo Control Valve Services Ltd for CAD$81 million in cash. 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 acquired business 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,” said David C. Adams, Chairman and CEO of Curtiss-Wright Corporation. “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. In addition, this transaction supports our long-term financial objectives including increased sales growth, margin expansion and solid free cash flow generation.”

Founded in 1993 and headquartered in Edmonton, Alberta, Canada, Dyna-Flo’s core product offering addresses the majority of control valve applications with designs ranging from compact low profile to heavy duty severe service. The complete range of valves have both on/off and throttle control for gas or fluid service and meet the critical industry standards of NACE and ASME B16.34 compliance. Control valves are an integral part of the pressure relief system design, where Curtiss-Wright enjoys a leadership position. Dyna-Flo has approximately 120 employees and is expected to generate sales of approximately CAD$33 million (US$25 million) in fiscal 2020, principally to the general industrial market. The acquisition is expected to close in March 2020.