- Acquisition strategically augments Graham’s custom
turbomachinery solutions, engineering and development team and
advanced manufacturing capabilities
- Patented technologies create opportunities for product and
technology integration to provide more effective solutions in
multiple markets
- Deepens reach into existing space and new energy markets and
creates greater diversification with addition of the medical
market
- Similar culture of excellence and processes to support full
product lifecycle
- Expected to be immediately accretive to earnings
Graham Corporation (NYSE: GHM ) (“Graham” or the “Company”), a
global leader in the design and manufacture of mission critical
fluid, power, heat transfer and vacuum technologies for the
defense, space, energy, and process industries, announced today
that it has acquired P3 Technologies, LLC (“P3”), a custom
turbomachinery engineering, product development and manufacturing
business for the space, new energy and medical markets. Based in
Jupiter, Florida, P3 has established a strong reputation in the
development of state-of-the-art rotating machinery including pumps,
compressors, and turbines and are specialists in high-speed rotors
and cryogenic pumps. With an experienced team of highly skilled
gas-turbine engineers, P3’s development process results in
innovative solutions to complex technical challenges.
Daniel J. Thoren, President and CEO, commented, “This is an
excellent demonstration of the acquisition element of our growth
strategy. P3 is an ideal bolt on business and brings highly
complementary technology that enhances and expands our
turbomachinery solutions. Our Barber Nichols’ team will provide the
experience and know-how for addressing the anticipated rapid growth
to support P3’s growing backlog and its funnel of opportunities.
Importantly, P3 also is bringing unique intellectual property that
we believe we can leverage to expand the market potential of the
business. We are excited about our future opportunities and welcome
P3 to the Graham team.”
High Value Add Technology
P3 has a strong intellectual property portfolio including the
patented Multi-Channel Diffuser (“MCD”) and Self-Contained
Actuating Magnetic Pump (“SCAMP”). These products provide a product
family platform that can be leveraged across many applications and
industries.
The MCD is revolutionary diffuser technology that improves the
efficiency of pumps and compressors by increasing pressure recovery
up to 20% and measurably increasing operating range. The MCD can be
used in new designs or retrofit applications and can work with any
pump or compressor that utilizes a centrifugal impeller.
SCAMP is a family of positive displacement pumps for low flow,
high pressure cryogenic applications compatible with oxygen,
hydrogen, methane and nitrogen.
P3 also has developed a family of turbopumps ranging in thrust
from 5 thousand to 200 thousand pounds. The turbopumps are designed
using state-of-the-art flow path design enabled by additive
manufacturing to provide higher performance at competitive
prices.
In addition, P3 has created robust turbomachinery development
tools which enable efficient design iteration cycles reducing lead
times to product launches for customers.
Solid Financial Performance; Transaction Terms
P3’s annual revenue is expected to be approximately $6.0 million
in fiscal 2023 with gross and adjusted EBITDA margins that are
consistent with Graham’s fiscal 2027 goal of low- to mid-teen
adjusted EBITDA margins. Backlog at October 31, 2023 was
approximately $8 million. We believe P3 has a pipeline with
significant upside potential.
A stock and cash transaction, P3 was acquired from its sole
owner who, along with P3’s leadership team, will remain with the
Company. The acquisition price has not been disclosed at this time.
However, the stock element of the purchase price is valued at $2
million and the number of shares of Company’s common stock issued
as part thereof was determined using a stock price of $15.92, which
represents the average closing price for the Company’s common stock
for the 10 trading days ending on November 3, 2023.
Accompanying Slides
Graham has posted slides that accompany this release on its
investor relations website.
About Graham Corporation Graham is a global leader in the
design and manufacture of mission critical fluid, power, heat
transfer and vacuum technologies for the defense, space, energy,
and process industries. The Graham Manufacturing and
Barber-Nichols’ global brands are built upon world-renowned
engineering expertise in vacuum and heat transfer, cryogenic pumps,
and turbomachinery technologies, as well as its responsive and
flexible service and the unsurpassed quality customers have come to
expect from the Company’s products and systems.
Graham Corporation routinely posts news and other important
information on its website where additional information on Graham
Corporation and its businesses can be found.
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as
amended.
Forward-looking statements are subject to risks, uncertainties
and assumptions and are identified by words such as “anticipated,”
“believe,” “can,” “expects,” “goal,” “potential,” “should,” ”may”,
“will,” and other similar words. All statements addressing
operating performance, events, or developments that Graham
Corporation expects or anticipates will occur in the future,
including but not limited to, profitability of future projects and
the business, realization of benefits from the acquisition of P3,
the integration and operation of P3, the effect of the P3
acquisition on our growth, and the timing of conversion of backlog
to sales, are forward-looking statements. Because they are
forward-looking, they should be evaluated in light of important
risk factors and uncertainties. These risk factors and
uncertainties are more fully described in Graham Corporation’s most
recent Annual Report filed with the Securities and Exchange
Commission (the “SEC”), included under the heading entitled “Risk
Factors”, and in other reports filed with the SEC.
Should one or more of these risks or uncertainties materialize
or should any of Graham Corporation’s underlying assumptions prove
incorrect, actual results may vary materially from those currently
anticipated. In addition, undue reliance should not be placed on
Graham Corporation’s forward-looking statements. Except as required
by law, Graham Corporation disclaims any obligation to update or
publicly announce any revisions to any of the forward-looking
statements contained in this news release.
Key Performance Indicators Management uses backlog as one
of its key performance metrics to analyze and measure the Company’s
financial performance and results of operations. Management uses
backlog as a measure of current and future business and financial
performance, and it may not be comparable with measures provided by
other companies. Backlog is defined as the total dollar value of
net orders received for which revenue has not yet been recognized.
Management believes tracking backlog is useful as it often times is
a leading indicator of future performance. In accordance with
industry practice, contracts may include provisions for
cancellation, termination, or suspension at the discretion of the
customer.
Given that backlog is an operational measures and that the
Company's methodology for calculating backlog does not meet the
definition of a non-GAAP measure, as that term is defined by the
U.S. Securities and Exchange Commission, a quantitative
reconciliation for it is not required or provided.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231110534429/en/
For more information: Christopher J. Thome Vice President
- Finance and CFO Phone: (585) 343-2216
Deborah K. Pawlowski Kei Advisors LLC Phone: (716) 843-3908
dpawlowski@keiadvisors.com
Graham (NYSE:GHM)
過去 株価チャート
から 5 2024 まで 6 2024
Graham (NYSE:GHM)
過去 株価チャート
から 6 2023 まで 6 2024