30th Sep 2014 07:41
LONDON (Alliance News) - Melrose Industries PLC said Tuesday that its Elster Gas business has signed a conditional agreement for the acquisition of Eclipse Inc in a deal worth USD158 million.
Eclipse is a manufacturer of gas combustion components and systems for industrial heating and drying applications headquartered in Rockford, Illinois. The company recorded sales of USD126 million for the fiscal year to March 31, 2014.
Melrose Industries said Tuesday that the USD158 million is payable in cash on completion and that the transaction is on a debt and cash free basis, set to be funded within the existing debt facilities of the Melrose Group.
Completion of the acquisition is expected to take place in November this year.
"Eclipse's long established expertise in low-temperature industrial gas combustion complements Elster's expertise in high-temperature industrial gas combustion applications in Europe," said the FTSE 250-listed company in a statement Tuesday.
Robert W. Baird & Co. is acting as financial advisor to Melrose on the transaction.
"Together, the two businesses will be able to provide customers with a more comprehensive offering, comprising a complete range of gas combustion solutions. We are confident that Eclipse will have a very successful future as part of Melrose," said Chief Executive of Melrose, Simon Peckham.
Shares in the company were Tuesday trading 1.05% higher at 239.90 pence per share, amongst the gainers on the FTSE 250.
By Alice Attwood; [email protected]; @AliceAtAlliance
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