TORISHIMA PUMP to Acquire 50% Interest of Fluid Equipment Development Company, LLC to Further Enhance Global Markets
Torishima Pump Mfg. Co., Ltd (“Torishima”) agreed to acquire a 50% interest in Fluid Equipment Development Company, LLC (“FEDCO”), a U.S-based manufacturer of pumps and hydraulic energy recovery devices, from its shareholder, and completed the transaction, on June 6, 2013 (June 5, 2013, U.S. time).
FEDCO is the industry leader in the design and manufacture of innovative fluid machinery such as turbocharger energy recovery devices and centrifugal pumps especially suited for RO desalination systems. FEDCO is maintaining the top market share by providing the widest range and most efficient turbochargers available. FEDCO has also developed turbochargers and power recovery turbines for a wide range of low pressure desalination and industrial RO systems. Future markets for FEDCO innovation and technologies are anticipated.
The management structure will remain the same, with Mr. Eli Oklejas as CEO. “Torishima shares our values of quality, efficiency, teamwork, and innovation. Our partnership is expected to yield exponential growth,” states Mr. Oklejas. This investment will benefit FEDCO customers with new technologies, world-wide sales and service capabilities, and further commitment of its advanced manufacturing and testing facilities.
FEDCO will continue operations in Monroe, Michigan and anticipates completion of a 6,650 m2 office and manufacturing expansion by the second quarter of 2014.
In June, 2012, Torishima and FEDCO agreed to establish a Joint Venture, Advanced Pumps International LLC (“Advanced Pump”) for the development, manufacture, sales and service of pumps to the Oil & Gas industry. Work on this venture is well under way. The investment of a 50% interest in FEDCO by Torishima will cement the relationship between the two parties, easing the way for greater penetration of global markets and aiding in the development of unique “Energy-Efficient” & “Energy Recovery” rotating equipment.
1. Strategy and its Purpose of this investment
The merging of Torishima and FEDCO will create a number of strategic benefits:
(1) A full range of products – High-efficiency pumps and energy recovery devices – under one umbrella, allowing for greater pooling of resources in exploring new markets such as Water , Oil & Gas and General industry, in addition to consolidating the dominance of both companies in the desalination market with pumps and turbochargers.
(2) Torishima currently does not have a manufacturing or service bases in the USA. This investment will allow Torishima to utilize FEDCO’s facility in the USA, with immediate effect, for conventional pump operations, giving Torishima a presence in all major continents.
(3) FEDCO’s efficient and advanced lean engineering system will be further developed to reduce delivery times, improve its already industry-leading efficiencies and expand the range of applications of FEDCO and Advanced Pump products.
2. Overview of this acquisition and Future Operation Policy
Although Torishima holds a 50% interest, FEDCO will continue to be managed by Mr. Eli Oklejas, current President, and is therefore not consolidated into the Torishima Group Financial Statement. The investment price will not be disclosed.
Consideration of this investment has been paid by cash on hold in Torishima to FEDCO shareholders.
3. Overview of FEDCO
|（1）||Company Name||Fluid Equipment Development Company, LLC|
|（2）||Headquarters||800 Ternes Drive, Monroe, MI USA|
|（3）||Representative||Eli Oklejas, President|
|（4）||Business Description||Design and manufacture of innovative fluid machinery, such as turbochargers and pumps, especially suited to the RO process|
|（5）||Expected Annual Turnover||US $25-30 million (Year 2013 expected)|
Fluid Equipment Development Company (FEDCO) is a designer and manufacturer of high pressure centrifugal pumps and energy recovery devices for seawater and brackish water reverse osmosis desalination. FEDCO world headquarters is located in Monroe, Michigan USA with Sales and Service offices in Dubai, UAE and Singapore. (www.fedco-usa.com)
Torishima Pump Manufacturing Company is headquarter in Osaka, Japan and was founded in 1919. It currently designs and manufactures centrifugal pumps and pumping systems for a variety of applications with installations throughout the world. It employs over 1400 people worldwide and has locations in over 16 countries. (www.torishima.co.jp/en)
For more information:
Alisha Cooley, Marketing Coordinator, FEDCO
+1 (734) 241-3935 firstname.lastname@example.org