Flow completes review of alternatives, decides to stick to strategic plan

By Lisa Kerner

Charlotte, N.C., May 17 - Flow International Corp.'s board of directors completed its strategic alternatives analysis and has decided to continue executing its strategic plan.

Houlihan Lokey Howard & Zukin Capital, Inc. assisted the board in its review.

"We are confident Flow can continue to deliver enhanced value to shareholders," chairman of the board Kathryn Munro said in a company news release.

"Between 2003 and 2006, Flow has increased revenue in its core business by almost 80%, repaid all its debts and returned to solid profitability," Munro added. "Flow has talented and hard working employees who delivered these results and are committed to executing on the company's strategic plan to deliver further growth and success."

Flow's board also said it has made significant progress in its search for a new chief executive officer and hopes to complete the search soon. Current chief executive officer Stephen Light is retiring.

The company recently turned down an offer from investor Daniel Loeb, head of Third Point LLC, to buy Flow due to what it called a lack of information.

Loeb said previously he was prepared to make an offer to buy the company if permitted to work with chief executive officer Stephen Light. Light, however, indicated he wasn't interested in a proposal and will retire as planned.

Third Point, a New York investment firm, has been pushing for the company to retain an investment bank since February. In addition, Loeb has been critical of the board and the qualifications of its members. Third Point is Flow's largest shareholder with a 13.6% controlling stake in the company.

Based in Kent, Wash., Flow develops and manufactures high-pressure water jet technology equipment used for cutting, cleaning and food-safety applications.

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