REG - Spirax-Sarco Engng - Acquisition to accelerate digital strategy

Spirax-Sarco EngineeringAnnouncement

24/01/2022 07:05

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RNS Number : 2992Z  Spirax-Sarco Engineering PLC  24 January 2022

 

News Release
 
24(th) January 2022

 

Acquisition to accelerate digital strategy

 

Spirax-Sarco Engineering plc, the multi-national thermal energy management and
niche pumping specialist, announces that it has entered into a definitive
agreement to acquire Cotopaxi Limited, a digitally enabled, global energy
consulting and optimisation specialist, from Business Intelligence of Oriental
Nations Corporation Ltd, for a consideration of £13.3 million, which is
£12.8 million on a cash and debt free basis.  The transaction will be funded
from cash resources and is scheduled to complete following the satisfaction of
limited conditions that the parties are confident will be fulfilled in a
timely manner.

 

Cotopaxi, which comprises a team of 38 energy engineers and software
specialists, was established in 2009 by its current Managing Director.  From
its UK base in Skelmersdale, it provides its global customer base with
consulting, digital connectivity and monitoring of energy intensive processes,
including steam. Cotopaxi's proprietary and customised software platform
generates critical insights, which are used to help its industrial customers
to reduce waste and drive efficiencies in their operations through more
effective management of energy use.  In the year ended 31(st) December 2020,
Cotopaxi reported revenues of £2.2 million.  Pre-pandemic revenues were
£4.8 million.

 

Cotopaxi will be integrated within the Group's Steam Specialties business,
comprising the leading product brands of Spirax Sarco and Gestra, which is
focused on providing innovative, efficient and sustainable solutions for
industrial steam customers.  Cotopaxi's digital solutions experience in steam
installations will accelerate Steam Specialties' objective to connect to its
customers' steam systems and analyse their data.  This will generate
opportunities to identify and implement solutions to support steam system
uptime, reduce waste and increase efficiency.  Cotopaxi will benefit from
increased market access for its software and services through Steam
Specialties' direct sales capabilities in 67 countries.

 

Nicholas Anderson, Group Chief Executive of Spirax-Sarco Engineering said: "We
are delighted to welcome the Cotopaxi team into our Group.  The important
role of digital technologies, which provide remote, real-time monitoring and
data-driven insights has never been clearer than during the pandemic. The
business is an excellent strategic fit for us, as we are both focused on
improving the efficiency and sustainability of industrial steam use.  The
software, platforms and experience they bring, together with the insights
derived from over a decade of data analysis, will be a key accelerator for the
digitally enabled customer solutions we offer in our Steam Specialties
business.

 

"Our immediate focus is on accelerating and improving our solutions for steam
customers.  The Cotopaxi team will also work closely with our digital
transformation teams, to continue to develop and embed digital enablement and
support customers in other parts of our Group."

 

Enquiries:

Andrew Guthrie, Head of Investor Relations

Hazel Meldrum, Group Head of Corporate Communications

 

Spirax-Sarco Engineering plc

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 over 8,500 people, including
more than 2,000 direct sales and service engineers.  Its 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)

 

 

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