<PAGE> 1
EXHIBIT 99.1
DALLAS, TEXAS AND WOODCLIFF LAKE, NEW JERSEY - Flowserve Corporation (NYSE:FLS)
and Ingersoll-Rand Company (NYSE:IR) announced today that Flowserve has reached
agreement in principle with the staff of U.S. Department of Justice ("DOJ") to
resolve the DOJ's antitrust concerns arising from Flowserve's pending
acquisition of Ingersoll-Dresser Pump Company ("IDP") from Ingersoll-Rand.
Final agreement remains contingent upon the negotiation of mutually acceptable
settlement documentation, which the company expects will soon be presented to
senior officials of the DOJ for necessary approval.
This agreement in principle includes a post-closing divestiture that would
affect less than three percent of the combined 1999 revenues of Flowserve and
IDP, including several product lines where Flowserve would retain certain
non-exclusive rights. This contemplated divestiture is primarily intended to
address DOJ concerns about sales of highly engineered pumps for installation in
oil refineries and power generation facilities in the U.S.A.
Flowserve currently expects to close the IDP transaction in August, after
necessary financing arrangements are completed.
Ingersoll-Rand is a major diversified industrial equipment and components
manufacturer serving the global growth markets of Climate Control, Industrial
Productivity, Infrastructure Development and Security and Safety. The company
employs approximately 46,000 people. Further information on Ingersoll-Rand can
be found on the company's worldwide web site at www.ingersoll-rand.com.
Flowserve Corporation is one of the world's leading providers of industrial
flow management services. Operating in 28 countries, with 1999 sales of $1.1
billion and about 7,000 employees, the Company produces engineered pumps for
the process industries, precision mechanical seals, automated and manual
quarter-turn valves, control valves and valve actuators, and provides a range
of related flow management services.
More information about Flowserve Corporation can be obtained by visiting the
Company's web site at www.flowserve.com.
###
SAFE HARBOR STATEMENT: This news release contains various forward-looking
statements and includes assumptions about Flowserve's future market conditions,
operations and results. These statements are based on current expectations and
are subject to significant risks and uncertainties. They are made pursuant to
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Among the many factors that could cause actual results to differ materially from
the forward-looking statements are: further changes in the already competitive
environment for the Company's products or competitors' responses to Flowserve's
strategies; the Company's ability to integrate IDP and Invatec into its
management operations; political risks or trade embargoes affecting important
country markets; the health of the petroleum, chemical and power industries;
economic turmoil in areas outside the United States; continued economic growth
within the United States; unanticipated difficulties or costs or reduction in
benefits associated with the implementation of the Company's "Flowserver"
business process improvement initiative, including software; and the recognition
of significant expenses associated with adjustments to realign the combined
Company's facilities and other capabilities with its strategies and business
conditions, including, without limitation, expenses incurred in restructuring
the Company's operations to incorporate IDP facilities, and the cost of
financing to be assumed by acquiring IDP.
--------------------------------------------------------------------------------
return to news release list
