Spirax-Sarco Engineering PLC Acquisition (2765B)
April 03 2017 - 2:30AM
UK Regulatory
TIDMSPX
RNS Number : 2765B
Spirax-Sarco Engineering PLC
03 April 2017
3(rd) April 2017
Acquisition of Gestra for EUR186 million (GBP160 million)
Spirax-Sarco Engineering plc (Spirax Sarco), which specialises
in the control and efficient use of steam, and in peristaltic
pumping and associated fluid path technologies, announces that it
has signed a conditional sale and purchase agreement to acquire
Gestra AG and associated businesses (Gestra) from Flowserve
Corporation for a cash-free, debt-free consideration of EUR186
million (GBP160 million).
Gestra, which has its headquarters in Bremen, Germany, is a
technology leader in advanced industrial boiler control systems and
specialises in the design and production of valves and control
systems for steam and fluid process control.
In 2016, Gestra recorded revenues of EUR92.5 million (GBP79.7
million), EBITDA of EUR16.6 million (GBP14.3 million) and EBIT of
EUR15.2 million (GBP13.1 million). Approximately 80% of the
company's revenues are in Europe with the balance spread roughly
evenly between the Americas and Asia Pacific.
At 31(st) December 2016, Gestra's gross assets were EUR66.8
million (GBP57.6 million).
Gestra is highly complementary to the Spirax Sarco Steam
Specialties business and will enhance and accelerate the
implementation of Spirax Sarco's strategy for growth, as a result
of its well-developed capabilities in a wide range of industries
and applications.
Due to its strong brand, Gestra will be operated alongside the
Spirax Sarco Steam Specialties business, targeting global growth in
its key market sectors through the co-ordinated application of the
knowledge and strengths of both businesses. Spirax Sarco will
invest in Gestra's product and market development to extend its
world-leading customer value proposition to an enlarged addressable
market.
The purchase consideration will be financed from a combination
of existing cash resources and debt facilities. The acquisition
will be accretive to Group earnings in 2017 but is expected to have
a slightly dilutionary impact on the Group profit margin in this
year.
Completion is subject to certain customary conditions, including
regulatory approval of the transaction by the merger control
authority in Germany. These conditions are expected to be satisfied
during the current quarter.
Nicholas Anderson, Chief Executive of Spirax-Sarco Engineering
plc, said;
"We are delighted to be bringing Gestra, its management and
employees into the Spirax Sarco family. Our businesses are highly
complementary; Gestra will enhance the market and product offering
of Spirax Sarco and will benefit from our global footprint and
broader product range. We believe that this combination will
deliver enhanced value to both customers and shareholders".
There will be a hosted conference call, including Q&A, for
investors and analysts at 9.30am UK time today. Dial-in numbers are
UK Toll Free 0808 109 0700 and for Standard International Access
+44 20 3003 2666. Please use the password 'Spirax-Sarco'.
Enquiries:
Nicholas Anderson, Chief Executive
Kevin Boyd, Group Finance Director
Tel: 01242 535234
About Spirax Sarco
Spirax-Sarco Engineering plc comprises two niche businesses,
Spirax Sarco for steam specialties and Watson-Marlow Fluid
Technology Group for 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 end users 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 over 5,300 people, of whom nearly
1,400 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
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END
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