Circor announces intent to sell distributed valves business

Circor International announced its intent to sell its Distributed Valves business, consistent with its strategic shift away from upstream oil & gas.
“This is an important step in Circor’s transformation as we continue to diversify away from upstream oil & gas and focus on more attractive end markets with enhanced growth and earnings potential,” said Scott Buckhout, President and Chief Executive Officer of Circor. “In conjunction with this strategic shift, the Energy Group’s overhead will be optimized by the end of the year, which is expected to generate annual run rate savings of approximately $4 million.”
“The management team is successfully executing the Company’s strategic plan and will continue to take the necessary actions that will best position Circor to deliver enhanced value for shareholders,” concluded Buckhout.
These actions, along with the divestiture of Engineered Values, are consistent with the 18-month plan communicated in June 2019. The Company’s segment operating loss attributable to the Distributed Valves and Engineered Valves businesses was approximately $8 million for the six months ended June 30, 2019. Distributed Valves and Engineered Valves will be reported as discontinued operations.