LAWRENCE, Mass. ― Flowserve Corp., which makes industrial pumps, said it agreed to acquire privately owned Lawrence Pumps Inc. to expand into the refining and oil sands industries.
Flowserve, which competes with Franklin Electric Co. Inc. and Pentair Inc., said the deal will hurt its 2011 earnings by less than 5 cents.
In July, Flowserve had maintained its 2011 earnings outlook at $7.10-$8 per share.
The company said it expects to fund the transaction — which is expected to close in the fourth quarter of 2011 — with cash on hand.
Lawrence Pumps estimates 2011 revenue of around $50 million.
The acquisition will provide Flowserve with technology that is critical to the refining, oil sands, polyolefin and polyethylene industries, Flowserve said in a statement.
Lawrence, Massachusetts-based Lawrence Pumps was formed in 1936, and has a presence in China, India and Singapore.
Shares of Flowserve, which is valued at about $4.12 billion, closed at $70 on Monday on the New York Stock Exchange.