FLOW INTERNATIONAL SIGNS AGREEMENT TO ACQUIRE SPIDER STAGING CORP.
FLOW INTERNATIONAL SIGNS AGREEMENT TO ACQUIRE SPIDER STAGING CORP. KENT, Wash. Sept. 10 /PRNewsire/ -- Flow International Corp. (NASDAQ: FLOW) today announced that it has signed a definitive agreement to acquire all of the outstanding stock of Spider Staging Corp. in a move to improve the distribution and service network for its products. Spider Staging, of Tukwila, Wash., is the leading supplier of temporary and permanently installed power-driven scaffolding equipment to the maintenance and construction industries in the United States. "Spider has 16 branch locations throughout the United States and Canada, giving us tremendous potential to increase our market penetration in the industrial cleaning, HydroMilling(R), and HydroCleaning(TM) markets. Some of these branches will also be used for regional demonstration sites to bolster our ultrahigh-pressure waterjet product sales," said Ronald W. Tarrant, president and chief executive officer of Flow International. "In addition, we expect Spider to enhance Flow's profitability commencing on the acquisition date. "We will begin combining facilities and staff where appropriate and will begin taking advantage of the synergies as soon as the acquisition is complete," he said. Tarrant said the acquisition is expected to be approved by Spider shareholders and finalized by Flow by the end of September. The acquisition will be accounted for as a pooling of interests. Flow will issue approximately 1.2 million shares of its stock in the acquisition and does not expect the transaction to be dilutive. Operating through 16 branch locations, Spider Staging Corp. designs, sells, rents, and services its equipment to most of the nation's construction and maintenance organizations. In its most recently completed fiscal year, Spider's revenues were $20 million. "We believe this decade will be one of restoration and repair of infrastructure throughout the United States and that the combination of Spider and Flow uniquely positions the combined entity to jointly market its products and services. Many of Spider's customers have been targeted for the sale of Flow industrial cleaning products," said W.R. Greenwood, president and chief executive officer of Spider. Flow International Corp. is the world's leading manufacturer of ultrahigh-pressure waterjets for industrial cutting, cleaning and HydroMilling services. -0- 9/10/92 /CONTACT: Thomas A. Cross of Flow International, 206-872-3286 or 800-645-6992, or Susan McAllister of the Rockey Co. for Flow International, 206-728-1100/ (FLOW) CO: Flow International Corp.; Spider Staging Corp. ST: Washington SU: CST IN: TNM
TM-RM -- SE005 -- 8186 09/10/92 16:15 EDT
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|Date:||Sep 10, 1992|
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