SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934*
Flow International Corporation
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(Name of Issuer)
Common Stock, par value $0.01 per share
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(Title of Class of Securities)
343468104
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(CUSIP Number of Class of Securities)
Daniel S. Loeb
Third Point LLC
390 Park Avenue
New York, NY 10022
(212) 224-7400
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
Copies to:
Michael A. Schwartz, Esq.
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019-6099
(212) 728-8000
February 2, 2007
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(Date of Event which Requires
Filing of this Schedule)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box: [X]
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 240.13d-7 for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
SCHEDULE 13D
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CUSIP No. 343468104 Page 2 of 11 Pages
---------------------------------- -----------------------
----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Third Point LLC
----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
----------- --------------------------------------------------------------------
3 SEC USE ONLY
----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF SHARES --------- ------------------------------------------------
BENEFICIALLY OWNED 8 SHARED VOTING POWER
BY EACH REPORTING
PERSON WITH 5,060,000
--------- ------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,060,000
----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
5,060,000
----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.6%
----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
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SCHEDULE 13D
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CUSIP No. 343468104 Page 3 of 11 Pages
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----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Third Point Offshore Fund, Ltd.
----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
----------- --------------------------------------------------------------------
3 SEC USE ONLY
----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
--------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF SHARES --------- ------------------------------------------------
BENEFICIALLY OWNED 8 SHARED VOTING POWER
BY EACH REPORTING
PERSON WITH 3,397,200
--------- ------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,397,200
----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
3,397,200
----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.1%
----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
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SCHEDULE 13D
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CUSIP No. 343468104 Page 4 of 11 Pages
---------------------------------- -----------------------
----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Daniel S. Loeb
----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
----------- --------------------------------------------------------------------
3 SEC USE ONLY
----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
NUMBER OF SHARES --------- ------------------------------------------------
BENEFICIALLY OWNED 8 SHARED VOTING POWER
BY EACH REPORTING
PERSON WITH 5,060,000
--------- ------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,060,000
----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
5,060,000
----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.6%
----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
----------- --------------------------------------------------------------------
This Schedule 13D is being filed pursuant to Rule 13d-1(e) under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), on behalf of
Third Point LLC, a Delaware limited liability company (the "Management
Company"), Third Point Offshore Fund, Ltd., a Cayman Islands limited liability
exempted company (the "Offshore Fund"), and Daniel S. Loeb, an individual ("Mr.
Loeb" and, together with the Management Company and the Offshore Fund, the
"Reporting Persons"). This Schedule 13D relates to the Common Stock, par value
$0.01 per share, of Flow International Corporation, a Maryland corporation (the
"Company"). Unless the context otherwise requires, references herein to the
"Common Stock" are to such Common Stock of the Company. The Management Company
is the investment manager or adviser to a variety of hedge funds and managed
accounts (such funds and accounts, collectively, including but not limited to
the Offshore Fund, the "Funds"). The Funds directly own the Common Stock to
which this Schedule 13D relates, and the Reporting Persons may be deemed to have
beneficial ownership over such Common Stock by virtue of the authority granted
to them by the Funds to vote and to dispose of the securities held by the Funds,
including the Common Stock.
Item 1. Security and Issuer.
This statement on Schedule 13D relates to the Common Stock of the Company
and is being filed pursuant to Rule 13d-1 under the Exchange Act. The address of
the principal executive offices of the Company is 23500 64th Avenue South, Kent,
Washington 98032.
Item 2. Identity and Background.
(a) This statement is filed by the Reporting Persons. Daniel S. Loeb is the
Chief Executive Officer of the Management Company and controls the Management
Company's business activities. The Management Company is organized as a limited
liability company under the laws of the State of Delaware. The Offshore Fund is
organized as a limited liability exempted company under the laws of the Cayman
Islands.
(b) The address of the principal business and principal office of the
Management Company and Mr. Loeb is 390 Park Avenue, 18th floor, New York, New
York 10022. The address of the principal business and principal office of the
Offshore Fund is c/o Walkers SPV Limited, Walker House, Mary Street, P.O. Box
908GT, George Town, Grand Cayman, Cayman Islands, British West Indies.
(c) The principal business of the Management Company is to serve as
investment manager or adviser to the Funds, and to control the investing and
trading in securities of the Funds. The
5
principal business of Mr. Loeb is to act as the Chief Executive Officer of the
Management Company. The principal business of the Offshore Fund is to invest and
trade in securities.
(d) None of the Reporting Persons, nor, to the best of their knowledge, any
of their directors, executive officers, general partners or members has, during
the last five years, been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors).
(e) None of the Reporting Persons, nor, to the best of their knowledge, any
of their directors, executive officers, general partners or members has, during
the last five years, been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
(f) Mr. Loeb is a United States citizen.
Item 3. Source and Amount of Funds or Other Consideration.
The Funds (including, but not limited to, the Offshore Fund) expended an
aggregate of approximately $26,421,526 of their own investment capital to
acquire the 5,060,000 shares of Common Stock held by them (the "Shares"). The
Offshore Fund expended an aggregate of approximately $17,245,615 of its own
investment capital to acquire its 3,397,200 shares of Common Stock.
The Funds effect purchases of securities primarily through margin accounts
maintained for them with Bear, Stearns Securities Corp. and Goldman, Sachs &
Co., which may extend margin credit to the Funds as and when required to open or
carry positions in the margin accounts, subject to applicable Federal margin
regulations, stock exchange rules and the firm's credit policies. In such
instances, the positions held in the margin accounts are pledged as collateral
security for the repayment of debit balances in the accounts.
Item 4. Purpose of Transaction.
The purpose of the acquisition of the Shares by the Funds is for
investment. The Reporting Persons may cause the Funds to make further
acquisitions of Common Stock from time to time or to dispose of any or all of
the shares of Common Stock held by the Funds at any time.
On February 2, 2007, the Reporting Persons sent to the Board of Directors
of the Company a letter, in response to the Company's announcement that its
6
Chief Executive Officer would retire, urging that the Company be sold and that
an investment bank be retained immediately to lead the sale process. A copy of
the letter is filed herewith as Exhibit 99.2 and is incorporated herein by
reference in its entirety.
The Reporting Persons are engaged in the investment business. In pursuing
this business, the Reporting Persons analyze the operations, capital structure
and markets of companies, including the Company, on a continuous basis through
analysis of documentation and discussions with knowledgeable industry and market
observers and with representatives of such companies (often at the invitation of
management). From time to time, one or more of the Reporting Persons may hold
discussions with third parties or with management of such companies in which the
Reporting Person may suggest or take a position with respect to potential
changes in the operations, management or capital structure of such companies as
a means of enhancing shareholder value. Such suggestions or positions may relate
to one or more of the transactions specified in clauses (a) through (j) of Item
4 of Schedule 13D of the Exchange Act, including, without limitation, such
matters as disposing of or selling all or a portion of the company or acquiring
another company or business, changing operating or marketing strategies,
adopting or not adopting certain types of anti-takeover measures and
restructuring the company's capitalization or dividend policy.
Except as set forth above, the Reporting Persons do not have any present
plans or proposals that relate to or would result in any of the actions required
to be described in Item 4 of Schedule 13D. Each of the Reporting Persons may, at
any time, review or reconsider its position with respect to the Company and
formulate plans or proposals with respect to any of such matters.
Item 5. Interest in Securities of the Issuer.
(a) As of the date of this Schedule 13D, the Management Company
beneficially owns 5,060,000 shares of Common Stock. The Management Company
shares voting and dispositive power over such holdings with Mr. Loeb and with
the Funds. The Shares represent 13.6% of the 37,245,132 shares of Common Stock
outstanding as of January 26, 2007, as reported in the Company's Quarterly
Report on Form 10-Q for the quarterly period ended October 31, 2006. The
percentages used herein and in the rest of this statement are calculated based
upon this number of outstanding shares.
As of the date of this Schedule 13D, the Offshore Fund directly
beneficially owns 3,397,200 shares of Common Stock, which represent 9.1% of the
outstanding shares of Common Stock. None of the other individual Funds owns a
number of shares of Common Stock representing more than 5% of such total.
(b) The Management Company and Mr. Loeb share voting and dispositive power
over the 5,060,000 shares of Common Stock held
7
directly by the Funds. The Management Company, Mr. Loeb and the Offshore Fund
share voting power and dispositive power over the 3,397,200 shares of Common
Stock held by the Offshore Fund.
(c) Schedule A hereto sets forth certain information with respect to
transactions by the Funds, at the direction of the Reporting Persons, in the
Common Stock during the past 60 days.
Schedule B hereto sets forth certain information with respect to
transactions by the Offshore Fund, at the direction of the Management Company
and Mr. Loeb, in the Common Stock during the past 60 days.
All of the transactions set forth on Schedule A and Schedule B were
effected in the NASDAQ Global Market.
Except as set forth above and on Schedule A and Schedule B, during the last
60 days there were no transactions in the Common Stock effected by the Reporting
Persons, nor, to the best of their knowledge, any of their directors, executive
officers, general partners or members.
(d) Other than the Funds which directly hold the Shares, and except as set
forth in this Item 5, no person is known to have the right to receive or the
power to direct the receipt of dividends from, or the proceeds from the sale of,
the Shares.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
to Securities of the Issuer.
Pursuant to Rule 13d-1(k) promulgated under the Exchange Act, the Reporting
Persons have entered into an agreement with respect to the joint filing of this
statement, and any amendment or amendments hereto.
Except as set forth herein, there are no contracts, arrangements,
understandings or relationships among the persons named in Item 2 or between
such persons and any other person with respect to any securities of the Company.
Item 7. Material to be Filed as Exhibits.
99.1. Joint Filing Agreement, dated as of February 2, 2007, by and between
the Reporting Persons.
99.2. Letter, dated February 2, 2007, from the Management Company to the
Company.
8
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: February 2, 2007
THIRD POINT LLC
By: /s/ Daniel S. Loeb
------------------------------------
Name: Daniel S. Loeb
Title: Chief Executive Officer
THIRD POINT OFFSHORE FUND, LTD.
By: /s/ Daniel S. Loeb
------------------------------------
Name: Daniel S. Loeb
Title: Director
/s/ Daniel S. Loeb
----------------------------------------
Daniel S. Loeb
[SIGNATURE PAGE TO SCHEDULE 13D WITH RESPECT TO
FLOW INTERNATIONAL CORPORATION]
Schedule A
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(Transactions by the Funds in Common Stock
during the past 60 days)
Date Transaction Shares Price Per Share($)
---- ----------- ------ ------------------
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/11/06 BUY 107,000 10.03
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/11/06 BUY 175,000 10.00
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/13/06 BUY 10,000 10.17
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/13/06 BUY 75,000 10.16
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/13/06 BUY 55,000 10.12
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/15/06 BUY 20,000 10.52
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/15/06 BUY 20,000 10.50
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/18/06 BUY 90,000 10.84
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/19/06 BUY 10,000 10.56
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/20/06 BUY 30,000 10.76
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/22/06 BUY 20,000 10.77
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/26/06 BUY 17,000 11.02
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/27/06 BUY 28,000 11.09
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/28/06 BUY 20,000 11.11
------------------------ ---------------------------- --------------------------------- -----------------------------------
2/1/07 SELL (100,000) 11.94
------------------------ ---------------------------- --------------------------------- -----------------------------------
Schedule B
----------
(Transactions by the Offshore Fund in Common Stock
during the past 60 days)
Date Transaction Shares Price Per Share($)
---- ----------- ------ ------------------
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/11/06 BUY 47,000.00 10.03
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/11/06 BUY 175,000.00 10.00
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/13/06 BUY 10,000.00 10.17
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/13/06 BUY 75,000.00 10.16
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/13/06 BUY 55,000.00 10.12
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/15/06 BUY 20,000.00 10.52
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/15/06 BUY 20,000.00 10.50
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/18/06 BUY 77,500.00 10.84
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/19/06 BUY 10,000.00 10.56
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/20/06 BUY 26,500.00 10.76
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/22/06 BUY 20,000.00 10.77
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/26/06 BUY 13,000.00 11.02
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/27/06 BUY 25,000.00 11.09
------------------------ ---------------------------- --------------------------------- -----------------------------------
12/28/06 BUY 17,000.00 11.11
------------------------ ---------------------------- --------------------------------- -----------------------------------
2/1/07 SELL -80,000.00 11.94
------------------------ ---------------------------- --------------------------------- -----------------------------------