2nd Jul 2014 11:48
LONDON (Alliance News) - Rotork PLC Wednesday said it has acquired Xylem Flow Control Ltd, a subsidiary of water technology provider Xylem Inc, for a total payment of GBP18 million in cash.
The gearbox and motor technology company said the purchase will be funded from cash reserves and its existing bank facilities.
Xylem Flow Control manufactures valves and instrumentation under the Midland-ACS and London Kingsway brands. It generated EBITDA of GBP2.0 million on turnover of GBP14.9 million in 2013, according to its accounts.
Rotork said the new acquisition will be renamed Rotork Midland Ltd and will sit within its Rotork Instruments Division, adding to its Fairchild, Soldo and YTC brands.
"XFC is a long standing supplier of high quality solenoid valves and an excellent addition to our Instruments division. This acquisition further enhances our range of instrumentation products and will enable us to expand the sales and coverage of Midland-branded products utilising our existing sales channels," Rotork Chief Executive Peter France said in a statement.
Rotork shares were down 0.1% to 2,677 pence on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Rotork