On 9 January 2006, Sulzer agreed to sell its Paco pumps business to Grundfos for USD 23.5 million (approximately CHF 30 million). The Paco product line, which recorded sales of about USD 39 million (approximately CHF 50 million) for the first 11 months in 2005, focuses on the commercial building sector, specifically heating, ventilation, and air conditioning (HVAC) applications. Paco was part of the pump activities of Precision Castparts Corp. (PCC) acquired by Sulzer in November 2004.

The main locations of the Paco pump activities are Houston, Texas, USA and Wuxi near Shanghai, China. The operation has approximately 225 employees in the USA and China. Grundfos has expressed its desire to remain in the key locations of Houston, USA and Wuxi, China, thus providing continuity for customers and employees.

Johnston and Crown, also part of the PCC acquisition in November 2004, will continue to expand under Sulzer’s ownership. The two successfully integrated product lines are core to the Sulzer Pumps division, and enhance its presence in vertical pumps for the power, process and water industry segment.

Sulzer Ltd., with headquarters in Winterthur, Switzerland, is active in 123 locations worldwide in the machinery and equipment sector, as well as the surfacing technology business. The company employs around 10,000 people. The total turnover in 2004 was around CHF 2 billion.

Grundfos is one of the world`s largest companies within the development, production and sale of pumps, pumps systems, electric motors and electronics. The Group’s total turnover is approximately CHF 3 billion. The Group employs around 14,000 people in 40 countries and will have its own production facilities in 14 countries.