Flow, OMAX End Acquisition Talks

Flow International Corp. recently announced that it would not exercise its option to acquire OMAX® Corp.

“After a thorough review of our financing alternatives, and discussions with OMAX Corporation about modifying the terms of the transaction, we have decided that acquiring OMAX would be excessively dilutive to Flow shareholders,” said Charles Brown, president and CEO of Flow.

Flow and OMAX agreed on March 10, 2009, to amend the terms of their merger agreement changing Flow’s opportunity to acquire OMAX from an obligation to an option exercisable by Flow, and agreeing to a release of merger-related litigation if the acquisition did not close.  

Flow separately announced that it recently established a significant network of new distributors, building the foundation of a new channel of distribution to complement its direct sales channel. 

“Consistent with our strategy to increase our reach and enhance the availability of waterjets across all market segments, we are building an additional distribution channel globally, initially signing on eight leading distributors in North America alone. These distributors will have access to the full range of Flow’s standard products, and we look forward to the increased market penetration they will provide,” said Jeff Hohman, executive vice president of Flow. 

In Canada, Flow reached agreements with Modern Tool, Wallace Machinery and Tool Co., and Westway Machinery.

“Flow is pleased to work with some of the finest machine tool dealers in North America,” said Hohman. “Waterjet technology is ideally suited for manufacturers of all types.  This new network allows them to access our technology and deal with people they already have trusted relations with. We look forward to the increased market penetration they will provide and the resulting increased awareness of waterjet capabilities.”

For more information, visit www.flowcorp.com and www.omax.com.