Swiss industrial engineering and manufacturing firm Sulzer and Sweden's Assa Abloy have signed an agreement for the acquisition of the business of Assa Abloy's Cardo Flow Solutions by Sulzer for a total cash consideration of € 660,7 million.
Cardo Flow Solutions - which includes pump firm ABS - is a full-line supplier of pumps and related equipment primarily for wastewater applications. The intended acquisition is intended to allow Sulzer to enter the wastewater pumps and related equipment market with a view to becoming a strong player in it.
Water and wastewater will become one of Sulzer's key markets, accounting for approximately 16% of total sales.
Headquartered in Malmö, Sweden, Cardo Flow Solutions business achieved 2010 sales of approximately € 360 million.
Ton Büchner, CEO of Sulzer, said, "Cardo Flow Solutions business with its complete pumping solutions for the wastewater market and its committed employees provides an excellent strategic fit for Sulzer. With the intended acquisition of this strong supplier in the attractive wastewater pumps market, Sulzer will be able to benefit from the attractive long-term growth of this market."
The intended acquisition is subject to customary regulatory approvals. Closing is expected in the second half of 2011.