Pump Acquisitions and Market Shares
August 2022
Acquisitions
·
IR Acquired Indian Pump, Filter and Systems
Companies
·
HIG-United Flow Technology Buys Shape to Add to
Southwest Valve
Market Share
·
Bungartz has Revenues of $11 Million and Adds
Rotary Piston Pump to Centrifugals
·
Spirax Sarco is a Leader in Pharma Peristaltic
Pumps
·
FGD is a Significant Niche Market for Large
Slurry Pumps
________________________________________________________________________
Acquisitions
IR Acquired Indian Pump, Filter and Systems
Companies
Holtec and Hanye expand Ingersoll Rand’s air
treatment capabilities and enhance the breadth
of solutions provided for the larger compressor
ecosystem. They will both join the Industrial
Technologies and Services segment.
Based in Saint Charles, Missouri, Holtec is an
internationally recognized nitrogen generator
manufacturer, and the recipient of the 2022
President’s “E” Award. Holtec offers expertly
designed onsite nitrogen generation systems for
industrial, food & beverage and manufacturing
applications and has annual revenue of
approximately $10 million.
Based in Shanghai, China, Hanye is an OEM
supplier of air treatment products with several
unique patents in China around desiccant and
refrigerated compressed air dryers and air
filters. Hanye has annual revenue of
approximately $4 million.
Based in Coimbatore, India, Hydro Prokav
manufactures and sells progressive cavity pumps
with more than 80% of its approximately $6
million in annual revenue coming from
aftermarket parts. Hydro Prokav expands
Ingersoll Rand’s presence in progressive cavity
pumps and serves as a complementary addition to
the recent Seepex acquisition to further
penetrate the growing market in India and
southeast Asia. Hydro Prokav will join the
Precision and Science Technologies segment.
“Through the use of Ingersoll Rand Execution
Excellence (IRX), we continue to execute on our
robust M&A funnel. The acquisitions of Holtec,
Hanye and Hydro Prokav demonstrate our
commitment to finding highly adjacent bolt-ons
which add products, capabilities and
technologies that enhance the quality of our
overall portfolio while expanding our
addressable market,” remarked Vicente Reynal,
chairman and chief executive officer of
Ingersoll Rand. “All three of these acquisitions
are directly aligned with our stated M&A
strategy, and we see
meaningful opportunity to drive incremental
synergies across our global businesses to
generate shareholder value.”
The acquisitions of Holtec and Hydro Prokav are
expected to be completed during the third
quarter of 2022. The acquisition of Hanye is
expected to be completed during the fourth
quarter of 2022.
HIG-United Flow Technology Buys Shape to Add
to Southwest Valve
H.I.G. Capital, a leading global alternative
investment firm with $50 billion of equity
capital under management,
announce that its portfolio company,
United Flow Technologies (“UFT”), a platform
established to invest in the municipal and
industrial water and wastewater market, has
completed the acquisitions of Shape, Inc.,
Engineered Equipment Solutions (“EES”), Newman
Regency Group and Southwest Valve & Equipment.
UFT has completed seven acquisitions since its
formation in July 2021.
These acquisitions represent four leading
providers of best-in-class products and
value-added services to the municipal water and
wastewater markets throughout the United States,
and accelerate UFT’s strategic entry into new
territories, product categories and OEM
partnerships.
As part of the transactions, UFT will partner
with the leadership teams of each business to
support their growth initiatives within an
integrated and operationally cohesive UFT, with
each business’ leadership team and brand
remaining in place. Additionally, each of the
key principals from each acquired company will
become shareholders of UFT. Terms of the
transactions were not disclosed.
Founded in 1979 and headquartered in Pleasanton,
CA, Shape is a provider of pumps and process
equipment to the municipal water and wastewater
markets. Shape provides industry-leading
products and repair services to its customers
via multiple offices throughout California.
Founded in 2003 and headquartered in State
Center, IA, EES is a provider of process
equipment products and services to the municipal
water and wastewater markets. EES offers high
quality, innovative solutions to its customers
via multiple offices across Iowa, Colorado and
Nebraska..
Founded in 1999 and headquartered in Stafford,
TX, Newman Regency is a provider of process
equipment products and services to the municipal
water and wastewater markets. Newman Regency
provides market-leading products from top-tier
manufacturers to its customers via multiple
offices across Texas and Oklahoma..
Founded in 2001 and headquartered in Fresno, CA,
Southwest Valve is a provider of flow control
products and services to the municipal water and
wastewater markets. Southwest Valve offers its
customers the most up-to-date sustainable custom
manufacturing solutions via multiple offices
across California, Nevada, Arizona and New
Mexico..
United Flow Technologies is a platform
established in July 2021 to invest in the
municipal and industrial water and wastewater
market. UFT partners with leading equipment
providers to provide world class products,
efficient solutions, and valuable services to
municipalities and industrial customers across
the United States.
H.I.G. is a leading global alternative assets
investment firm with $50 billion of equity
capital under management.* Based in Miami, and
with offices in New York, Boston, Chicago,
Dallas, Los Angeles, San Francisco, and Atlanta
in the U.S., as well as international affiliate
offices in London, Hamburg, Madrid, Milan,
Paris, Bogotá, Rio de Janeiro and São Paulo,
H.I.G. specializes in providing both debt and
equity capital to small and mid-sized companies,
utilizing a flexible and operationally focused/
value-added approach:
1.
H.I.G.’s equity funds invest in management
buyouts, recapitalizations and corporate
carve-outs of both profitable as well as
underperforming manufacturing and service
businesses.
2.
H.I.G.’s debt funds invest in senior, unitranche
and junior debt financing to companies across
the size spectrum, both on a primary (direct
origination) basis, as well as in the secondary
markets. H.I.G. is also a leading CLO manager,
through its WhiteHorse family of vehicles, and
manages a publicly traded BDC, WhiteHorse
Finance.
3.
H.I.G.’s real estate funds invest in value-added
properties, which can benefit from improved
asset management practices.
4.
H.I.G. Infrastructure focuses on making
value-add and core plus investments in the
infrastructure sector.
Since its founding in 1993, H.I.G. has invested
in and managed more than 300 companies
worldwide. The firm's current portfolio includes
more than 100 companies with combined sales in
excess of $30 billion.
Market Share
Bungartz has Revenues of $11 Million and Adds
Rotary Piston Pump to Centrifugals
Bungartz introduced a new rotary piston pump at
Achema. Bungartz is a family company which
has made centrifugal pumps since the 1930s.
Frank Bungartz is the present CEO. Clients
include Wacker, BASF, Yara and other major
chemical companies.
2020 revenues were Euro 10.7 million. Marketing
includes articles in German language
magazines and a few in international
publications.
·
01/21 Verfahrenstechnik online:
Sichere und zuverlässige Förderung mit
Spezialkreiselpumpen
·
01/21 Prozesstechnik:
Tauchpumpen für anspruchsvolle Anwendungen
·
10/20 CITPlus:
Pumpenstillstände vermeiden - Eigensichere und
energieeffiziente Lösung für die Praxis
·
01/17 MaschinenMarkt Österreich:
Ausfallsicher Kosten senken
·
09/16 Chemical Engineering:
Slurry pumps for tough process conditions
·
09/16 Chemical Engineering:
Magnetic Coupling Pumps: Structure, Function and
Best Practice
·
08/16 World Pumps:
Magnetically coupled pumps prove their worth
·
08/16 Chemical Engineering:
These pumps solve problems
·
08/16 VGB Power Tech:
Cavitation-free, intrinsically safe pumping of
condensates
·
Spirax Sarco is a Leader in Pharma Peristaltic
Pumps
The biopharmaceutical industry is booming. Sales
of peristaltic pumps are growing at double digit
rates. Suppliers are largely flow and treat
companies with multiple products. One of the
leaders, Watson Marlow is part of Spirax Sarco
which
has the following market shares.
Despite Flow and Treat revenues of more than $1
billion the company has only a 0.2% market share
in this broader market. Its share of the pump
market is well less than 1%. However, it
has an 8% share of the pharmaceutical pump
market. There are six types of rotary pumps of
which peristaltic is one. This leader has a 30%
share of this product segment but just in
pharmaceuticals. Its share with certain
customers such as Regeneron is 70% or more.
Certain aspects of the pharmaceutical
peristaltic pump market are unique at the
present time. One is the value of early
delivery. With the need for much greater vaccine
production, the demand for peristaltic pumps is
extending delivery dates. So this is a cost of
ownership factor which needs to be considered.
FGD is a Significant Niche Market for Large
Slurry Pumps
China will build 33,000 MW of FGD systems this
year. Most will incorporate wet limestone FGD
systems. This will require an investment of over
$30 million for slurry pumps. FGD pump repairs
to the 900,000 MW already in place will require
another $40 million investment in FGD slurry
pumps.
Weir (now Trillium) and KSB dominated the
market. Chinese and other suppliers have been
increasing their market share recently.
The market hierarch is as follows.
Dry systems require only a small investment in
pumps. Wet systems require a big investment.
Other process decisions also impact the market.
It is necessary to understand the processes and
predict which will be used. The market for FGD
pumps was determined by this method.
There are differences in the pump requirement
depending on the reagent and the design of the
absorber. A tray tower relies on fan energy for
mass transfer. A spray tower relies on twice as
much slurry for the same result but with lower
fan energy. The preference is for spray towers.
However, McIlvaine predicts that tray towers
will gain market share over the next five years.
Both types require the same amount of limestone
slurry feed. However, Chinese plants opt for
regional dry grinding rather than purchase of
ball mills for wet grinding at the plant.
Most plants use forced oxidation and make wall
board quality gypsum. Natural oxidation results
in a very difficult sludge which may require
reciprocating pumps as the slurry is mixed with
lime to make a landfill product.
Market Shares of pump companies for this
application are impacted by the choice of
absorber, method of grinding, and other process
choices.
