REG - Spirax-Sarco Engng - Exclusive negotiations to acquire Vulcanic

SpiraxAnnouncement

04/07/2022 07:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220704:nRSD1558Ra&default-theme=true

RNS Number : 1558R  Spirax-Sarco Engineering PLC  04 July 2022

 

News Release
 
4 July 2022
Exclusive negotiations to acquire Vulcanic for €261.7 million

 

Spirax-Sarco Engineering plc, the thermal energy management and niche pumping
specialist, announces that it has entered into exclusive negotiations with a
view to acquire the Vulcanic Group of Companies (Vulcanic) from Qualium, a
French private equity company, for consideration of €261.7 million (£225.5
million) on a cash and debt free basis, subject to customary closing
adjustments.

 

Vulcanic is a European industrial electric heating group, established in 1973,
and is the largest supplier in Europe of bespoke industrial electric heating
solutions.  Vulcanic is headquartered in Paris, France, with 10 manufacturing
facilities worldwide and over 700 employees, of whom almost 90% are based in
the Europe, Middle East and Africa (EMEA) region.

 

Vulcanic will support the delivery of growth in the Group's Electric Thermal
Solutions (ETS) Business through its existing customers, products and
operational footprints which are mostly in the EMEA region and will complement
our existing Chromalox Business which is mostly focused on the Americas
region.  Vulcanic operates a direct sales model to end users and Original
Equipment Manufacturers, as well as contractors, and serves a range of markets
aligned to the core market sectors of ETS.

 

Vulcanic's strategic fit with ETS expands the platform to deploy the Group's
business model and drive further improvements in sales growth and margin over
time. As part of ETS, Vulcanic will play a significant role in supporting the
Group's drive to help customers decarbonise their critical industrial
processes through electrification, for which there is already strong demand
from European customers. The acquisition of Vulcanic is expected to be
accretive to Group earnings in 2022.

 

Upon completion of information and consultation procedures with employee
representatives, the transaction will require certain regulatory approvals in
France and by the merger control authority in Germany. These conditions are
expected to be satisfied during the third quarter of this year. The
consideration will be financed through an acquisition bank facility.

 

Nicholas Anderson, Group Chief Executive, Spirax-Sarco Engineering plc, said:
"We are looking forward to welcoming colleagues from Vulcanic into our
Group.  We have been following Vulcanic for some time and believe the
acquisition represents an excellent opportunity to broaden our addressable
market and further deploy our industry leading technologies in Europe.
 Vulcanic's existing strength and scale in Europe - with further investment
by our Group - will provide a fantastic platform for growth, especially for
our recently launched portfolio of TargetZero solutions, which electrify heat
generation for industrial processes to support our customers' decarbonisation
objectives."

 

Financial Information for Vulcanic

In the year ended 31st December 2021, Vulcanic recorded revenues of €89.4
million (£76.8 million), earnings before interest, tax, depreciation and
amortisation (EBITDA) of €17.6 million (£15.2 million) and earnings before
interest and tax (EBIT) of €16.0 million (£13.8 million) on an adjusted
pro-forma basis. On an audited basis EBIT was €14.1 million (£12.1
million). As at 31st December 2021, Vulcanic's gross assets were €222.0
million (£186.8 million), including goodwill from previous Vulcanic
acquisitions.

 

RNS filter: Inside information prior to release

LEI  213800WFVZQMHOZP2W17

 

 

Enquiries:

Nimesh Patel, Chief Financial Officer

Andrew Guthrie, Head of Investor Relations

Tel:  +44 01242 535035

 

 

 

About Spirax‐Sarco Engineering plc

Spirax‐Sarco Engineering plc is a thermal energy management and niche
pumping specialist.  It comprises three world‐leading Businesses: Steam
Specialties, for the control and management of steam; Electric Thermal
Solutions, for advanced electrical process heating and temperature management
solutions; and Watson-Marlow, for peristaltic pumping and associated fluid
path technologies. The Steam Specialties and Electric Thermal Solutions
Businesses provide a broad range of fluid control and electrical process
heating products, engineered packages, site services and systems expertise for
a diverse range of industrial and institutional customers.  Both Businesses
help their end users to improve production efficiency, meet their
environmental sustainability targets, improve product quality and enhance the
safety of their operations.  Watson‐Marlow provides solutions 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, UK, has strategically located
manufacturing plants around the world and employs more than 8,700 people,
including almost 2,000 direct sales and service engineers.  The Company's
shares have been listed on the London Stock Exchange since 1959 (symbol: SPX)
and it is a constituent of the FTSE 100 and the FTSE4Good indices.

 

 

Further information can be found at www.spiraxsarcoengineering.com
(http://www.spiraxsarcoengineering.com)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQRJMBTMTMMTAT