3rd Dec 2018 08:29
LONDON (Alliance News) - Spirax-Sarco Engineering PLC on Monday said it has sold unit HygroMatik GmbH to Carel Industries SpA for EUR59.0 million on a debt and cash free basis.
The FTSE 250-listed firm said Hamburg-headquartered humidification equipment manufacturer HygroMatik has a strong position in the public buildings, spa and wellness sectors. It joined Spirax-Sarco in 1988 but due to limited strategic fit has always operated separately from the Steam Specialties division, in which it was reported.
The steam and electrical thermal energy solutions provider highlighted that low level of integration limited HygroMatik's ability to improve sales growth and maintain profitability.
In 2017, HygroMatik's sales totaled GBP13.0 million and operating profit was GBP3.9 million.
"HygroMatik is a high quality company and has been an excellent member of the group for the last 30 years," said Spirax-Sarco Chief Executive Nicholas Anderson.
"I am delighted that they will now join Carel, where the better strategic fit should enable even stronger performance," added Anderson.
Spirax-Sarco shares were trading 3.2% higher on Monday morning at 6,330.00 pence each.
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