The Gores Group, LLC Acquires Avure Technologies and Related Entities from Flow International Corporation
November 2, 2005
Los Angeles, CA, November 2, 2005 - The Gores Group, LLC ("Gores"), a leading privately held investment firm, announced today that it has acquired Avure Technologies Inc. from Flow International Corporation (Nasdaq: FLOWE).
Avure Technologies, which specializes in the manufacturing of high-pressure presses for the food industries, is the market leader in the development of wire wound, high-pressure presses. Under the brand name Quintus Industrial Presses, Avure has been providing industrial presses for more than 30 years and has delivered more than 1,500 systems worldwide to customers including Ford and Boeing. The acquired company and FLOW will maintain a commercial relationship to build on Avure's leading position in the design and manufacture of advanced high-pressure presses for the food industry.
"We are excited to join the Gores portfolio of companies," stated Pat Adams, President and CEO of Avure Technologies Inc. "Gores provides the strategic and operational expertise that will enable Avure to leverage our decades of expertise into emerging market applications. We believe that there is tremendous growth potential for high-pressure presses in the food and industrial markets. With Gores' assistance we will now have the ability to focus on our core technology and significantly expand the utilization of pressure."
Steve Yager, President of Mergers & Acquisitions at Gores, added, "The Avure acquisition represents an excellent opportunity for Gores. Avure is the world's leading developer and supplier of high-pressure presses and is also very well positioned to capitalize on the future growth of high-pressure presses for the food industry. Gores plans to work together with management to maintain the company's pre-eminent position and also provide the support required to explore new growth opportunities for the business."
As part of the agreement Gores will acquire Avure Technologies Incorporated, Avure Technologies AB, Flow International FPS AB, and assets of Flow Holding Sagl, which are all wholly owned subsidiaries of Flow International Corporation. Also included in the transaction is FLOW's 51% interest in a joint venture with Snap-tite, which is called Flow Autoclave Systems. The acquisition also includes FLOWES General Press operations, which consist of the North America Press and the International Press segments, as well as the non-ultrahigh-pressure portion of the food business, which is included in Avure's Fresher Under Pressure(R) food segment.
Nadim M. Nsouli, who led the transaction and is Gores' European Head, said, "This transaction involved significant carve-out issues which Gores' M&A and operations teams have extensive expertise in. This acquisition fits well with Gores' strategy and further expands Gores' portfolio in Europe."
"This transaction largely completes our strategy to divest ourselves of operations that are not part of our core ultra-high-pressure water pump business," said Stephen R. Light, FLOW's President and Chief Executive Officer. "We are pleased to have found a buyer with the qualifications and experience of Gores and look forward to working with them to support the press and food system businesses with our waterpumps and aftermarket spares and replacement parts."
About The Gores Group, LLC
The Gores Group, LLC ("Gores") is a private investment firm focused on the technology and telecommunications sectors. Since 1987, Gores has amassed an enviable track record of successful investments within these sectors. The firm combines the seasoned M & A team of a traditional financial buyer with the operational expertise and detailed due diligence capabilities of a strategic buyer. Gores has a long standing record of creating sustainable value in its portfolio companies by focusing on customers and employees, supporting management with operational expertise and providing the capital required for growth. Headquartered in Los Angeles, California, Gores maintains offices in Boulder, Colorado; London; and Zurich. (www.gores.com)
About Avure Technologies, Inc. and Quintus Industrial Presses
Avure Technologies, Inc. is headquartered in Kent, Washington and specializes in the manufacturing of high-pressure presses for the food industry. Its Fresher Under Pressure � technology unleashes the power of high-pressure processing, using water pressure to make foods that are safer, last longer and taste better. For information, visit www.avure.com
Avure Technologies AB has an unmatched position in designing the appropriate solutions to make industry leading high pressure presses for any given application and customer. Flow Autoclave Systems is a joint venture with Snap-tite, Inc., a supplier of high-pressure valves, fittings, tubing, and hose, as well as high pressure processing equipment for a wide variety of applications. Flow Autoclave Systems sells hot and cold isostatic presses. For information, visit www.avure.se and www.flowae.com
About Flow International Corp.
Flow International Corporation (Flow), the inventor of abrasive waterjet technology, is the world leader in the development and manufacture of ultrahigh-pressure (UHP) waterjet systems. Nearly 60% of all waterjet systems sold in the world are made by Flow. Flow�s UHP technology is used for pure and abrasive waterjet cutting, surface preparation, and food processing applications. For information, visit www.flowcorp.com
For additional information, please contact:
The Gores Group, LLC (310) 209-3010
Sitrick And Company (310) 788-2850