Flowserve Corp., a provider of flow control products and services, has announced a new agreement to acquire valve-maker Mogas Industries for up to $305 million. The deal, advised by Baker McKenzie, includes $290 million in upfront cash and a potential $15 million earnout. Foley & Lardner LLP is representing Mogas Industries in the transaction.
Flowserve $305M Mogas Buy : Details of the Acquisition
Flowserve’s $305 million Mogas buy is expected to close in the fourth quarter of 2024, pending regulatory approvals and other closing conditions. Once finalized, Mogas will be integrated into Flowserve’s flow control division, enhancing the company’s presence in the mining, power, and process industries.
Flowserve, headquartered in Irving, Texas, serves global infrastructure markets with a wide range of flow control products and services. Mogas Industries, based in Houston, specializes in severe service valves and aftermarket services, making it a strategic fit for Flowserve’s expanding portfolio.
Strategic Fit and Financial Impact
“Mogas is highly complementary to Flowserve’s current valve portfolio and further advances our 3D growth strategy by roughly doubling our direct mining and mineral extraction exposure and driving further diversification,” said Scott Rowe, president and CEO of Flowserve. He emphasized that the acquisition will create “technically differentiated scale in severe service flow control with significant aftermarket contribution,” and meets Flowserve’s financial criteria, promising value enhancement for shareholders, customers, and associates alike.
