CIRCOR to sell distributed valves business in shift away from upstream oil and gas
Valve manufacturer CIRCOR recently announced its intent to sell its Distributed Valves business, as the company continues to follow through with a strategic shift away from upstream oil and gas.
Commenting on the announcement, Scott Buckhout, president and CEO, said: “This is an important step in CIRCOR’s transformation as we continue to diversify away from upstream oil and gas and focus on more attractive end markets with enhanced growth and earnings potential.
"In conjunction with this strategic shift, the Energy Group’s overhead will be optimised by the end of the year, which is expected to generate annual run rate savings of approximately $4 million [€3.6 million].
“The management team is successfully executing the company’s strategic plan and will continue to take the necessary actions that will best position CIRCOR to deliver enhanced value for shareholders.”
CIRCOR initially communicated its plans to shift away from upstream oil and gas in June 2019; this latest move, which follows the divesture of its Engineered Valves business, is consistent with the company’s 18-month plan.
The company’s segment operating loss attributable to the Distributed Valves and Engineered Valves businesses was around $8 million [€7.3 million] for first half of 2019. Distributed Valves and Engineered Valves will be reported as discontinued operations.
Commenting on the announcement, Scott Buckhout, president and CEO, said: “This is an important step in CIRCOR’s transformation as we continue to diversify away from upstream oil and gas and focus on more attractive end markets with enhanced growth and earnings potential.
"In conjunction with this strategic shift, the Energy Group’s overhead will be optimised by the end of the year, which is expected to generate annual run rate savings of approximately $4 million [€3.6 million].
“The management team is successfully executing the company’s strategic plan and will continue to take the necessary actions that will best position CIRCOR to deliver enhanced value for shareholders.”
CIRCOR initially communicated its plans to shift away from upstream oil and gas in June 2019; this latest move, which follows the divesture of its Engineered Valves business, is consistent with the company’s 18-month plan.
The company’s segment operating loss attributable to the Distributed Valves and Engineered Valves businesses was around $8 million [€7.3 million] for first half of 2019. Distributed Valves and Engineered Valves will be reported as discontinued operations.
