(By Balaseshan) Gorman-Rupp Co. (NYSEAMEX: GRC) said its National Pump Co. unit has reached an agreement in principle to acquire the business of American Turbine Pump Companies (ATP) for an undisclosed sum.
"ATP's strong customer relationships and long history will help expand sales in target growth markets and complement existing brands of National Pump Co., acquired in 2010," said Jeffrey Gorman, president and CEO of Gorman-Rupp.
In addition, ATP's facilities will provide substantial additional capacity, including machining and testing capabilities, which will expand business opportunities of both brands.
[Related -25 Companies Raising Distribution In 2012’s Busiest Week For Dividend Increases]
During 2011, ATP had approximately $15 million in revenue from sales of its products through its Lubbock, Texas headquarters and two other locations in Houston, Texas and Fresno, California.
Founded in 1975, ATP is a group of companies that collectively are a leading manufacturer and distributor of energy-efficient vertical turbine and submersible pumps primarily serving agricultural, municipal and industrial markets, both domestically and globally.
The planned business combination is expected to be completed in December 2012.
Gorman-Rupp designs, manufactures and globally sells pumps and related equipment (pump and motor controls) for use in water, wastewater, construction, industrial, petroleum, original equipment, agriculture, fire protection, heating, ventilating and air conditioning (HVAC), military and other liquid-handling applications.
[Related -3 Stock Splits That Could Make Big Returns For Investors]
GRC is trading down 1.50 percent at $27.63 on Friday. The stock has been trading between $25.51 and $34.65 for the past 52 weeks.