BSM is a Dutch Flow Control company that develops and markets high-end valves and shutters for the oil & gas industry. The company has sales of € 17m per annum and we believe it has premium operating margins (estimate: 14-16%). BSM is bought from the owner, who is in his mid-40’s and who will remain onboard for many years to come. Consolidation is expected for 1 January 2013. According to Aalberts, the deal is EPS accretive, and they are very optimistic on the prospects of cross-selling via the existing operating companies Broen (Denmark, Eastern Europe) and Conbraco (US), which also have exposure to the energy segment.
Looks like a nice deal, but the impact should be small:
BSM will add less than 1% to group sales in 2013, so the impact is rather small.