Denmark-based
pump manufacturer Grundfos Group has acquired Peerless Pump Co., a U.S.-based manufacturer
of pumps and fire protection systems. It is Grundfos’ largest acquisition to
date; Peerless has more than 400 employees and annual sales of $110 million.
Carsten
Bjerg, Group President and CEO of Grundfos Group, said in the
announcement that Grundfos has recently focused
on growing its business globally, especially in Eastern Europe, Asia and North
America. Grundfos has had a U.S. presence since 1973. “The US market has a significant
growth potential and seen in that perspective the acquisition of Peerless is of
great strategic importance to Grundfos.” The company continues its expansion of
its R&D facilities and production capacity in North America. It sees the
Peerless acquisition as crucial to strengthening its U.S. market position.
Grundfos’ sales
in North America are $300 million. The U.S. pump market alone is estimated to
be $6 billion, and Grundfos expects to double sales within a four-year period.
Søren Ø. Sørensen, Group Executive Vice
President and Chairman of the Board of Grundfos in North America, said, “We expect a lot
from this deal and see great potential for globalization, especially of the
Peerless fire protection systems.” He also anticipates continued investments in
the United States.
Dean
E. Douglas will continue in his present position as President and CEO of
Peerless with reference to the Grundfos Group’s new Regional Managing Director,
Jes Munk Hansen.