Flow announces cancellation of OMAX acquisition
Flow International Corp., a developer and manufacturer of industrial waterjet machines for cutting and cleaning applications, has announced that it is not exercising its option to acquire OMAX Corp.
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 that it recently signed on eight new distributors in North America.