Gardner Denver expands in international market

July 21, 2008

Staff

Gardner Denver, Inc. announced today it will acquire a compressed air and gas solutions manufacturer by the end of the fourth quarter.

The transaction for the purchase of CompAir, headquartered in Redditch, U.K., is reported to be for $395 million, and will be paid through a combination of cash and the assumption of CompAir's existing debt.

Gardner Denver President and CEO Barry Pennypacker said in a press release that CompAir has a strong reputation for innovative and high quality products.

CompAir does more than three-quarters of its sales in Europe and Asia. Its main manufacturing facilities are in Germany, the U.K., Florida and China. Pennypacker said the deal will extend Gardner Denver's global market reach.

CompAir reported a profit of $16.1 million on revenue of $265.1 million for the year ending March 31.

"By blending the complementary product lines and geographical reach of CompAir and Gardner Denver, the combined business will be well positioned to take advantage of future growth opportunities for its products, services and people," Pennypacker said.

CompAir has Industrial, Hydrovane and Reavell divisions.

The Industrial Division manufacturers products such as oil-injected and oil-free rotary screw compressors, piston compressors and portable rotary screw compressors that are used in oil and gas exploration and mining and construction. The Hydrovane Division makes rotary vane compressors and the Reavell Division manufacturers high pressure reciprocating compressors.

Pennypacker said Gardner Denver believes there is opportunity to grow "the profitability of this business post-transaction through lean enterprise techniques, low cost country sourcing and capturing integration synergies."

The transaction is subject to certain closing conditions, including receiving regulatory approvals.

Gardner Denver had $1.9 billion in revenue in 2007. The company will release its second quarter financial report Wednesday.

On the Web: www.gardnerdenver.com