KMT Expands the Waterjet Product Area through Strategic Acquisition
KMT has acquired Aqua-Dyne, a U.S. based company with annual sales of about $8 million USD. The acquisition gives KMT access to a new growing market segment with significant potential and will create synergies with KMT Waterjet Systems.
Privately owned Aqua-Dyne, based in Houston, Texas, has manufactured high pressure waterjetting systems and accessories mainly for the U.S. market since the late 1960's. Its products are used in surface preparation, cleaning and concrete removal (hydro-demolition). These processes are more environmentally friendly alternatives to traditional sand blasting and grinding methods. The served market segments include shipbuilding, petro-chemical and construction industries. The global market size is estimated to $330 million USD with an annual growth rate of 7 percent.
Aqua-Dyne has a staff of 35 employees and a sales of $8 million USD, with an operating margin of approximately 12 percent. More than half of the sales are derived from the aftermarket, and the business has an installed base of approximately 5000 pumps.
"The acquisition of Aqua-Dyne significantly increases our market potential in the Waterjet area. By combining KMT Waterjet Systems' existing organization, international experience and distribution channels with Aqua-Dyne's strong brand, we see considerable growth opportunities world-wide," said Lars Bergström, President and CEO of KMT.
Aqua-Dyne will be a part of the Waterjet Cutting Product Area and will be consolidated in the Group as of April 7, 2006. The agreed purchase price of $10 million USD will primarily be financed through bank loans. An acquisition analysis will be reported in the interim report for the second quarter, scheduled for release on August 21.
For further information, please contact:
Lars Bergström, President and CEO, Karolin Machine Tool AB
Tel: +46 8 594 211 50 or lars.bergstrom@kmt.se
