Flowserve to Acquire MOGAS Industries, Accelerating 3D Growth Strategy

Flowserve Corporation (“Flowserve”) (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, announced today that it has signed a definitive agreement (the “Agreement”) to acquire MOGAS Industries (“MOGAS”), a privately held, Houston-based provider of mission-critical severe service valves and associated aftermarket services for $290 million with a potential $15 million earnout (the “Transaction”). The Transaction is expected to close in the fourth quarter of 2024.

Founded in 1973, MOGAS was established by V. Louis Mogas with the purchase of a small machine shop. Today, MOGAS is a leading manufacturer of severe service isolation valves for a variety of end-markets, including mining, power and process industries through its state-of-the-art manufacturing facility in Houston. MOGAS has established sales and service offices in Australia, China, Europe, Canada, South America, the Middle East and India, countries which are highly complementary to Flowserve’s served geographies.

MOGAS' differentiated valve products are expected to enhance Flowserve's installed base, creating meaningful aftermarket opportunities. Upon completion of the Transaction, MOGAS will be integrated into Flowserve’s Flow Control Division (FCD) segment, building upon Flowserve’s comprehensive valve and automation portfolio with the addition of MOGAS’ strong brand, heritage, and technical expertise in diverse and attractive end markets. Flowserve anticipates customers of both companies will significantly benefit from the newly combined product portfolios in the growing mining industry.

“MOGAS is highly complementary to Flowserve’s current valve portfolio and further advances our 3D growth strategy by roughly doubling our direct mining and mineral extraction exposure and driving further diversification. The combination creates technically differentiated scale in severe service flow control with significant aftermarket contribution,” said Scott Rowe, Flowserve’s President and Chief Executive Officer. “This acquisition meets our disciplined financial criteria and positions us to enhance value for all our shareholders, customers and associates. We are excited to welcome the MOGAS team to Flowserve.”