ITT to Acquire Godwin Pumps

ITT Corporation (ITT) entered into an agreement to acquire privately held Godwin Pumps, a leading supplier of automatic self-priming portable pumps, for $585 million.
 
Upon completion of the acquisition, Godwin will merge into ITT’s $1.6 billion Water & Waste Management business. The acquisition, after all regulatory clearances, is expected to close in the third quarter of 2010. The deal is expected by ITT to be accretive in 2011 but likely to be dilutive to 2010 earnings by 3 cents to 5 cents per share.
 
ITT Corporation has been constantly engaged in expanding its Water & Waste Management business, a global provider of water handling and treatment solutions for municipal and industrial customers in more than 140 countries. This acquisition offers ITT the opportunity to expand internationally. The combination of Godwin Pumps with ITT’s business is expected to increase the company’s dewatering equipment and services revenue by two-fold. ITT currently sells Flygt and Grindex brand dewatering pumps.  
 
Godwin is a US-based company and has its manufacturing facility in Gloucestershire, England. It supplies automatic self-priming portable pumps to the global industrial, construction, mining, municipal and oil & gas market segments. ITT Corporation and Godwin have been associated with each other since 2003, through a partnership agreement for ITT’s electric submersible pumps.
 
Major competitors of ITT are Emerson Electric Company (EMR), General Electric Company (GE), Flowserve Corp. (FLS) and Honeywell International Inc. (HON).
 
Headquartered in New York City, ITT Corporation is a global multi-industry leader in high-technology engineering and manufacturing services. It is engaged in the design, manufacture, and sale of a wide range of engineered products and services for three vital markets: water and fluids management, global defense and security, and motion and flow control.
 
We currently maintain our Neutral rating on ITT Corporation.

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