Spirax-Sarco Engineering PLC Acquisition (4634Q)
November 30 2016 - 2:00AM
UK Regulatory
TIDMSPX
RNS Number : 4634Q
Spirax-Sarco Engineering PLC
30 November 2016
30(th) November 2016
Spirax Sarco acquires Aflex Hose Limited for GBP61.4 million
Spirax-Sarco Engineering plc (Spirax Sarco), the world leader in
the control and efficient use of steam, and in peristaltic pumping
and associated fluid path technologies, announces that it has
acquired Aflex Hose Limited and its subsidiary Aflex Hose USA LLC
(Aflex) for GBP61.4 million.
Aflex, based in Halifax, UK and with a sales and assembly
operation in Pennsylvania, USA, specialises in the design and
manufacture of PTFE-lined flexible hoses for the pharmaceutical,
food, chemical and automotive industries. The business will be
integrated into the Watson-Marlow Fluid Technology Group (WMFTG).
We are pleased that Rod Anderson, a founder, will continue as a
technical advisor and that senior management will remain with the
business.
Aflex is highly synergistic with, and a natural extension to,
the WMFTG fluid path product portfolio and further strengthens
WMFTG's already strong global presence in the biotechnology,
pharmaceutical, industrial, chemical and food & beverage
sectors. Aflex utilises patented, market-leading technology to
produce PTFE-lined flexible hoses, which outperform other PTFE and
standard hose types within the most demanding applications,
ensuring the highest levels of chemical resistance, superior
flexibility and sterility. Aflex's premium PTFE-lined hoses
complement our FlowSmart silicone hoses and WMFTG's other fluid
path products, as part of our strategy to provide a complete
value-added hose and tubing range.
The Aflex brand has a well-established worldwide reputation and
the company had net sales of over GBP23 million in their last
financial year, ended August 2016, with underlying EBITDA of GBP6
million. Post completion, Spirax Sarco will invest in Aflex to
further develop its products and routes to market.
The purchase consideration is on a debt free and cash free
basis, and will be financed from Spirax Sarco's existing resources.
The acquisition will have a negligible impact on Group earnings in
the current year but is expected to be a positive contributor from
2017 onwards.
Enquiries:
Nicholas Anderson, Chief Executive
Kevin Boyd, Group Finance Director
Tel: 01242 535234
About Spirax Sarco
Spirax-Sarco Engineering plc is the world leader in each of its
two businesses, Spirax Sarco for steam specialties and
Watson--Marlow Fluid Technology Group for niche peristaltic pumps
and associated fluid path technologies. The steam specialties
business provides a broad range of fluid control products,
engineered packages, site services and systems expertise for a
diverse range of industrial and institutional customers. The
company helps its customers to improve production efficiency,
reduce energy costs, water usage and emissions, improve product
quality and enhance the safety of their operations. Watson-Marlow
Fluid Technology Group offers the ideal solution for a wide variety
of demanding fluid path applications with highly accurate,
controllable and virtually maintenance free pumps and associated
technologies. The Group is headquartered in Cheltenham, England,
has strategically located manufacturing plants around the world and
employs approximately 5,000 people, of whom around 1,300 are direct
sales and service engineers. Its shares have been listed on the
London Stock Exchange since 1959 (symbol: SPX).
Further information can be found at
www.spiraxsarcoengineering.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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