Paradice Investment Management Opens New $18 Million Position in Flowserve (NYSE: FLS)
Key Points
Paradice acquired 338,154 shares in new position; estimated trade size of approximately $17.97 million.
This change represented 4.03% of Paradice's 13F reportable assets under management as of 2025-09-30.
Post-trade stake: 338,154 shares valued at $17.97 million as of September 30, 2025.
The Flowserve position places it outside Paradice's top five holdings by reported market value.
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Paradice Investment Management LLC initiated a new position in Flowserve Corporation (NYSE:FLS) during the third quarter, acquiring 338,154 shares valued at an estimated $17.97 million as of 2025-09-30, according to an SEC filing dated October 20, 2025.
What happened
Paradice Investment Management LLC disclosed in a filing with the Securities and Exchange Commission on October 20, 2025, that it initiated a new stake in Flowserve Corporation during the third quarter.
The fund reported ownership of 338,154 shares valued at $17.97 million as of September 30, 2025, based on its Form 13F filing.
There was no previous position reported in the prior quarter's filing.
What else to know
This represents a new position for the fund, accounting for 4.03% of Paradice's reportable U.S. equity assets as of September 30, 2025.
Top five holdings after the filing:
- Globus Medical: $37.97 million (8.5% of AUM) as of September 30, 2025
- Envista: $36.81 million (8.3% of AUM) as of September 30, 2025
- Lear: $32.28 million (7.24% of AUM) as of September 30, 2025
- Mohawk Industries: $30.58 million (6.86% of AUM) as of September 30, 2025
- Generac: $30.35 million (6.8% of AUM) as of September 30, 2025
As of October 20, 2025, shares of Flowserve were priced at $51.23 and underperformed the S&P 500 by 20 percentage points over the same time.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $4.65 billion |
| Net Income (TTM) | $291.58 million |
| Dividend Yield | 1.6% |
Company Snapshot
Flowserve designs, manufactures, and services industrial flow management equipment, including pumps, valves, mechanical seals, and automation solutions.
It generates revenue through equipment sales, aftermarket services, and maintenance solutions across two main divisions: Flowserve Pump Division and Flow Control Division.
The company serves customers in oil and gas, chemicals, power generation, water management, and diversified industrial sectors worldwide.
Flowserve Corporation operates in industrial flow management, offering a diverse portfolio of engineered products and aftermarket services.
The company leverages its extensive expertise and global footprint to deliver mission-critical solutions for complex fluid movement and control applications.
The company focuses on aftermarket services and maintains broad end-market exposure within the industrial machinery sector.
Foolish take
Paradice's purchase of Flowserve is a noteworthy investment on a couple of fronts.
First, Flowserve immediately becomes Paradice's 12th-largest position at 4% of the firm's portfolio. This is a hefty opening position for a stock.
Second, the purchase is interesting because Flowserve and Chart Industries (NYSE:GTLS) just agreed to a "merger of equals," which would combine their complementary businesses.
With very similar customer bases, the deal could make a lot of sense and generate a bundle of synergies. Management believes $300 million annually in cost savings, to be precise.
This is a hefty figure considering the company's combined earnings before interest, taxes, depreciation, and amortization (EBITDA) is $1.6 billion currently.
Whereas Flowserve helps with all things regarding pumps and flow control, Chart brings expertise in the thermal management niche, offering cryogenic and compression products.
Paradice seems to be interested in this opportunity and believes there is value to be unlocked through this merger.
Management expects the combined company to have an enterprise value of roughly $19 billion with $1.9 billion in adjusted EBITDA, so it would only be trading around 10 times adjusted EBITDA.
This valuation isn't a bad price to pay for a company poised to become its niche's leader after the combination -- and Paradice is betting big on this potential merger and the cross-selling potential that comes along with it.
Glossary
13F filing: A quarterly report required by the SEC from institutional investment managers detailing their equity holdings.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Dividend yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
Aftermarket services: Support, maintenance, and parts provided for products after the initial sale.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Stake: The amount of ownership or investment a fund or individual holds in a company.
Industrial flow management: The control and movement of liquids and gases in industrial processes using specialized equipment.
End-market exposure: The range of industries or sectors a company serves with its products or services.
Mechanical seals: Devices used to prevent leakage where a rotating shaft passes through a stationary housing in machinery.
Market value: The current total value of an investment or holding, based on the latest market price.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Globus Medical. The Motley Fool recommends Flowserve. The Motley Fool has a disclosure policy.
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