Filtration Industry Analyst May 1998

BBA TO BUY VERATEC

IBA Group plc has signed a eiinitive agreement to pur- hase the assets of Veratec, nternational Paper’s Jonwovens Division.

The purchase price, sub- ect to certain post closing djustments, is approximately JS$290 million in cash. The leal, which has been approved I both companies’ boards of rectors, awaits approval by e appropriate governmental Iencies.

David Miles, president of BA Nonwovens Division, rid that as Veratec has sub- antial business in the indus- ,ial, specialty and medical markets, the combination rould provide significantly lore balance to BBA’s North ,merican nonwovens busi. ess. Veratec had 1997 sales OI

pproximately US$250 mil on. The company has manu acturing plants in Georgia Massachusetts, Pennsylvania ;outh Carolina, Wisconsin Mexico and Canada.

WATERLINK REVISES 2Q OUTLOOK

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Waterlink Inc has warnet ;hat although revenues fo the 2nd quarter of its fists year ending 30 Septembe 1998 will produce signiiicar increases over the prior yea quarter, revenues and eat-r ings will not meet markt expectations.

The company cite

delayed orders at its Biocle; subsidiary as the primary fal tor, adding that economic ar competitive pressures relatf to its Nordic Water Produc Group have resulted in low than expected results.

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Waterlink explained that it

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ts businesses. As a result, the lelay in obtaining several large mrchase orders within one narket segment at its Bioclear subsidiary will significantly mpact quarterly results. The ielays were not an ongoing rend in the business but were ndicative of a specialized mar- ket segment of Bioclear.

The company also said that economic conditions in Europe, and competitive factors related to its Nordic Water Products Group subsidiary, are contribut- ing to the revised quarterly results outlook. Waterlink anticipates that 2nd quarter rev-

nues will be in the range of S$24-26 million, and earn- tgs per share on a fully-diluted asis will be in the range of JS$O.Ol-0.03 per share.

The company also nnounced that it has entered rto a letter of intent to pur- hase a group of companies y_ith combined annual rev- nues of over US$55 million. he transaction is scheduled to lose in June 1998. Chet S Loss, Waterlink’s president urd chief executive officer, ,aid that a principal compo- rent of the acquisition pro- ;ram has been to acquire recurring revenue products and ;ervices, thereby reducing the :ompany’s reliance on the cap- tal goods cycle, in general. md the timing of larger orders, In particular.

Waterlink also announced that it had completed the acqui- sitions of Aquafine Engineering Services Limited (AES), locat- ed in Ely, Cambridgeshire, UK, and Purac Engineering Inc (Purac), located in Wilmington, Delaware.

US FILTER/ CULLIGAN DEAL

PROGRESSES

US Filter Corporation ai id

Culligan Water Technologi es Inc have announced that t: he

waiting period under the I JS Hart-Scott-Rodino Antitrt 1st

The early termination of .his waiting period satisfies a :ondition under the previously announced merger agreement between US Filter and Culligan. Subject to Culligan and US Filter stockholder approvals, and the satisfaction of other conditions, including

In-US regulatory approvals, e companies expect to com- ete this transaction before the rd of US Filter’s fiscal first ratter, ended 30 June 1998.

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TROY MILLS RESTRUCTURES

‘ray Mills Inc is reorganiz- ng its reporting structure ntro three industry groups: lutomotive; apparel and fur- Iishings; and filtration and ethnical fibres.

At the same time, opera- ions have been combined mder single management 3arrett F Ripley, president :hief executive officer, ant :hairman said that the goa If the new structure was tc focus energy on generatim growth in sales, placing responsibility lower in the organization and combining operations under sing11

management to better emplo: and coordinate resources Managers of the busines groups will have a clear line o authority and will be accounl able for performance withi their groups.

Meanwhile, the search fc a vice president of the filtratio and technical fabrics businer group is currently underwa: The business group will b responsible for all producl sold into the liquid, air an specialty filtration markets, z well as new industrial produ’ areas such as abrasive SUI

strates. The vice president wi

be made a member of the exe1 utive committee and will t located at the company’s Tro New Hampshire headquarter