Expert Insight from Jordan, Knauff & Company
by G. Cook Jordan Jr. & Lori A. Callaway

Driven by an improved environment for fixed investment spending in developed nations and by increased investment in water infrastructure in developing countries, global demand for fluid handling pumps is expected to increase 5.5 percent per year to $84 billion in 2018. According to a recent Freedonia Group report, the Asia Pacific region will account for 44 percent of new pump demand during this period, but the U.S. will remain the largest national market due to its large process manufacturing industries and water infrastructure needs. centrifugal pumps will continue to be the most commonly used design, and demand for aftermarket parts will benefit from rising manufacturing activity, particularly in harsh environments such as the chemical industry.

Global pump manufacturer Sulzer Ltd. is in discussions to acquire Ensival Moret (Ensival) for an enterprise value of approximately $83.6 million from Moret Industries. Ensival designs, manufactures and markets a complete range of centrifugal and mixed flow pumps. Its product range includes self-priming, liquid ring vacuum, high-capacity submersible and canned motor pumps. The company also provides repair, equipment upgrades, technical support, maintenance and custom engineered services. With sales of approximately $120 million in 2015, Ensival has leading positions in a range of industrial applications such as fertilizers, sugar, mining and chemical processing.

The company was founded in 1905 and is based in Saint-Quentin, France. Ensival has seven manufacturing facilities (two in France, two in Belgium, one in China, one in Brazil, and one in India) and 15 service centers. The business will be integrated into Sulzer's Pumps Equipment division and will allow Sulzer to become a full line supplier in most industrial process applications by closing the gaps in its general industry pump portfolio, such as axial flow pumps.

Sulzer provides pumping solutions, rotating equipment maintenance and services, as well as separation, reaction, and mixing technology solutions worldwide. The company has annual revenue of approximately $3 billion and operates through three divisions: Pumps Equipment, Rotating Equipment Services and Chemtech. The Pumps Equipment division offers various pumps and systems for engineered, configured and standard pumping solutions. In 2015, the company reorganized this division into three market-oriented business units and now focuses on the production, transport and processing of crude oil and derivates; the supply, treatment and transport of water and wastewater collection; and fossil-fired, nuclear and renewable power generation. The Pumps Equipment division has a network of more than 20 manufacturing sites and more than 150 sales and service centers worldwide. The division had sales of approximately $1.7 billion in 2015.

Sulzer's Rotating Equipment Services division provides service solutions for turbines, pumps, compressors, motors and generators. The Chemtech division provides separation technology, process solutions and field services for the hydrocarbon and chemical processing industries. In addition, this division provides mixing and dispensing technology.

Sulzer was founded in 1834 and is headquartered in Winterthur, Switzerland, with a presence in more than 40 countries. Europe, the Middle East and Africa comprised 41 percent of the company’s total sales in 2015 with production and service locations in 26 countries in the region. With operations in eight countries, the Americas accounted for 38 percent of the company's sales, while the Asia Pacific region accounted for 21 percent of sales in 2015 with operations in 10 countries.

Sulzer Pumps Equipment Division 2015 Sales