Flowserve Corp. announced that it has sold assets of its General Services Group (GSG) to Furmanite Worldwide Inc., a unit of Dallas-based Xanser Corp., for approximately $16 million in gross cash proceeds, while retaining approximately $12 million of net accounts receivable. The final purchase price is subject to certain post-close adjustments. Net cash proceeds will be used to repay debt.

The GSG businesses that were sold include pressurized on-line repair services at customer sites and general valve repair services at local service centers. The company retained its valve service centers that focus on servicing and repairing Flowserve-manufactured valves, plus its global valve manufacturing operations.

Flowserve announced earlier in 2005 that it was seeking a buyer for GSG, which was part of Flowserve's Flow Control Division. The GSG business was subsequently reclassified as a discontinued operation in the first quarter of 2005. The company expects GSG to have 2004 revenues greater than $100 million and to incur an operating loss.

Flowserve estimates it will recognize in its 2005 financial results a loss related to impairment charges and the ultimate sale totaling approximately $34 million, subject to any post-closing adjustments, plus transaction expenses and related employee retention costs.

The transaction closed on Dec. 31, 2005.