Kent, WA May 11, 2009 Flow International Corporation (NASDAQ: FLOW), the world's leading developer and manufacturer of industrial waterjet machines for cutting and cleaning applications, announced today that it would not exercise its option to acquire OMAX Corporation.
Charley Brown, President and CEO of Flow said, 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.
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 anticipates charges consistent with its previous disclosures in connection with its decision not to complete the transaction.
Flow separately announced today that it recently established a significant network of new distributors, building the foundation of a new channel of distribution to complement its industry-leading 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.
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