Flowserve expects the acquisition to be accretive to its adjusted earnings per share (EPS) in the first full year following the deal’s completion, with Mogas contributing approximately $200 million in annual revenue. The $15 million earnout is contingent on Mogas achieving specific adjusted EBITDA targets for the 2024 calendar year.
Cultural and Strategic Alignment
Mogas Industries’ leadership expressed enthusiasm for the acquisition, citing cultural alignment and growth opportunities within Flowserve. “There is no better cultural and strategic fit for our family’s 50-year-old business than joining with Flowserve, a company that shares our unwavering commitment to customers, people, and products,” said Matt Mogas, president and CEO of Mogas.
Flowserve plans to fund the $290 million upfront payment through a combination of cash and available debt financing. Jefferies is serving as the financial adviser to Flowserve, while Baird is advising Mogas.
