Ohio Pump Maker to Purchase BW/IP

Durco International Inc. agreed to buy BW/IP Inc. of Long Beach for about $450.2 million in stock, creating an industrial pump company with a market value of about $1.2 billion. Dayton, Ohio-based Durco said BW/IP shareholders will receive 0.6968 Durco share for each of their shares. The exchange values BW/IP at $18.55 a share, based on Durco’s closing stock price of $26.625 on Friday. One day after announcing the agreement, BW/IP shares fell 87.5 cents to close at $17.50 on the NYSE, while Durco shares rose 25 cents to close at $26 on Nasdaq. The purchase allows Durco to move beyond its reliance on the chemical industry by adding BW/IP’s strength in petroleum markets, which represents about two-thirds of its revenue. BW/IP had revenue of about $492.2 million in 1996, while Durco had sales of about $605.5 million last year. The combined companies’ larger size also helps them reach more markets with more products, analysts said. The industrial pump business is very competitive and cost savings are often passed on to customers as lower prices, rather than adding them to the bottom line. Durco Chief Executive William Jordan will become president and chief operating officer of the new company.