Calnetix, Inc., a global leader in energy efficient high speed motor and generator technologies, components and systems, announced today that its former subsidiary Direct Drive Systems (DDS) has been acquired by FMC Technologies (NYSE: FTI) for approximately $120 million in cash.
DDS was created in 2003 as an internal Calnetix business unit to leverage Calnetix’s proprietary core technologies into high-speed motor/generator systems above 1.5MW. Calnetix’s core technologies, which include permanent magnet motors and generators, magnetic bearings, and power electronics, enabled DDS to create machines that are significantly smaller, lighter, and more efficient than traditional solutions. In 2004, DDS was spun out of Calnetix as a stand-alone company to provide compression and pumping solutions for pipeline, offshore platform, and subsea applications in the oil and gas industry.
Vatche Artinian, Chairman of Calnetix, stated: "We are delighted with DDS’s success and the value recognition placed on our core motor/generator technology, which can be used in a wide variety of applications. DDS is just one expression of our technology base, and we will continue to leverage this base to create innovative products addressing new markets.”
Brad Garner, Calnetix’s CEO, added, "Calnetix is very pleased with DDS’s success. We believe our core technology has an even stronger value proposition when applied to our current business focus of converting waste heat into electricity. The waste heat energy from US industry alone is ten times greater than the energy output of all existing US geothermal, solar, and wind resources combined. Making power from this wasted resource represents the best global opportunity to increase energy efficiency.”
For further information, contact Craig Glynn, Calnetix CFO, at +1-562-293-1660 or cglynn@calnetix.com.
Calnetix, Inc. is a global leader in high speed high efficiency permanent magnet electric motors and generators, magnetic bearings, and high frequency power electronics. Calnetix’s wholly owned subsidiary Calnetix Power Solutions, Inc. (www.calnetixps.com) manufactures waste heat recovery power generation systems and microturbines for distributed power applications. For more information visit www.calnetix.com.
Direct Drive Systems (DDS) is the world's leading producer of high-speed, high-power synchronous motors and generators, utilizing permanent magnet technology. DDS also produces magnetic bearings, which make oil-free turbomachinery applications possible. DDS drive systems provide efficient and cost-effective compression, pumping, and generation solutions for pipeline, offshore platform, and subsea applications in the oil and gas and process industries. DDS motors and generators operate up to 23,000RPM with power levels up to 16,000HP and couple directly to loads without gearboxes, increasing efficiency while reducing size, weight, and capital/operating costs. DDS is currently headquartered in Cerritos, Calif. For more information, visit www.DirectDriveSystems.net.
FMC Technologies, Inc. (NYSE: FTI) is a leading global provider of technology solutions for the energy industry and other industrial markets. The Company designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. Named by FORTUNE Magazine as America's Most Admired Oil and Gas Equipment, Service Company in 2008, FMC Technologies has approximately 10,400 employees and operates 19 manufacturing facilities in 14 countries. For more information visit www.fmctechnologies.com.
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