Management of GL&V has reported that the integration plan of Eimco, acquired November 8th, is advancing faster than expected. Barely one month after the acquisition, the Company has already completed 75 percent of the rationalization and integration measures. This is especially true with regard to the Salt Lake City operations, Eimco's former head office, which had to undergo a major restructuring to ensure that the new Dorr-Oliver Eimco entity will benefit from a more competitive cost structure in order to efficiently adapt to market fluctuations, while maintaining an important presence at these facilities. Dorr-Oliver Eimco is a leader in process equipment for the separation of liquids and solids used by various industries such as mining and minerals as well as the treatment of drinking water and municipal and industrial wastewater.
"Considering the speed at which our plan is progressing, we are more than confident about accomplishing most of the integration within six months, so the initially budgeted recurring savings of $25 million to $30 million should be achieved as of fiscal 2003-2004," indicated Laurent Verreault, President and Chief Executive Officer. Verreault added that integrating Eimco will entail non-recurring rationalization costs of $10 million to $15 million, most of which will be capitalized in the acquisition price. It should be pointed out that right after the Eimco acquisition, GL&V's total order backlog had reached $203 million ($80 million of which from Eimco).
Concurrently, the Company is implementing Dorr-Oliver Eimco's management succession plan to fill the position of its current President, Greg Bruyea, who will retire at the beginning of 2003. "Greg built a dynamic and resourceful team to assume his succession at the helm of Dorr-Oliver Eimco. This team has played a key role in our business acquisition and integration strategy since 1991 and was notably responsible for the current success of Eimco's integration plan," added Laurent Verreault.