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 LONG BEACH, Calif., Jan. 13 /PRNewswire/ -- BWIP Holding Inc. (NASDAQ-NMS: BWIP), parent company of BW/IP International Inc., today announced a series of related actions that are designed to expand its markets and restructure its operations for improved market focus, cost savings and competitiveness.
 Implementing a plan the company said will strengthen its business for the long term, BWIP:
 -- Acquired Pacific Wietz GmbH & Co. KG, one of the leading European manufacturers of mechanical seals for chemical markets.
 -- Announced its intention to divest its Fluid Controls segment.
 -- Disclosed that it will restructure its pump operations in order to generate future savings and achieve manufacturing efficiencies.
 Pacific Wietz operates seal manufacturing plants in Dortmund, Germany, and Oensingen, Switzerland, and a network of 10 sales offices in Germany, Austria, Italy and the Netherlands. The company employs 250 people at these locations. Pacific Wietz also has marketing and dealer relationships in an additional 10 countries in Europe and the Far East.
 The 1993 sales of Pacific Wietz are expected to be approximately $25 million.
 BWIP also announced it is actively seeking a buyer for its Fluid Controls segment, which manufactures aerospace control systems for tactical missiles and aircraft. Fluid Controls had 1993 sales of approximately $37 million and employs 222 at facilities in Van Nuys and Canoga Park, Calif.
 Discussing today's announcements, Chairman and Chief Executive Officer Peter C. Valli said, "The Pacific Wietz acquisition accelerates our expansion in chemical markets, particularly in Europe. Additionally, we are acquiring well-respected sealing technologies, broadening our product lines and expanding the global distribution of Pacific Wietz' products. We expect this acquisition to have a positive impact on 1994 earnings and provide more momentum to our continued building of a world-class pump and seal company.
 "We have recognized for some time that the Fluid Controls business does not fit into our primary business of pumps, seals and related equipment," Valli said. "The divestiture of Fluid Controls will allow us to redeploy capital into our core operations and generate better returns for our shareholders."
 BWIP Holding said that the scope of the restructuring of its pump operations will be communicated at the time of the announcement of the company's 1993 results on Feb. 25.
 "The restructuring will address the fundamental shifts in the pump industry that have resulted in excess capacity, changes in customer buying patterns and demanding international competition," Valli said. "The planned restructuring will be initiated quickly and is expected to produce ongoing savings."
 The company added that discontinuance of the Fluid Controls segment and restructuring activities will result in significant one-time charges to 1993 earnings.
 Concerning the outlook for 1994, Valli said, "For the past several quarters we have experienced lower bookings in both original equipment and the higher-margin aftermarket businesses of parts, repairs and service. The recovery in aftermarket orders, which had been anticipated throughout 1993, has not yet materialized. Based on this slow recovery in our markets and our current backlog, first quarter results will fall below last year's comparable first quarter and it will be difficult in 1994 to match comparable 1993 earnings results.
 "Going forward, we have a strong balance sheet and are in position to further expand our business and take advantage of opportunities," concluded Valli. "We believe firmly in the long-term viability of our core petroleum and power markets and should realize the benefits of participating in these markets in 1995 and beyond."
 BW/IP International is a worldwide supplier of advanced-technology pump, seal and fluid control equipment and services.
 -0- 1/13/94
 /CONTACT: Dan Peoples, 310-435-3700 or 619-552-1456/

CO: BWIP Holding Inc.; BW/IP International Inc.;
 Pacific Wietz GmbH & Co. KG ST: California IN: SU: TNM RCN

JP-MF -- SD003 -- 1659 01/13/94 08:01 EST
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Publication:PR Newswire
Date:Jan 13, 1994

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