Cheltenham-based Spirax Sarco has announced it has acquired US company Chromalox for US$415million (£319million).

Spirax Sarco specialises in the control and efficient use of steam, and in peristaltic pumping and associated fluid path technologies.

Chromalox is a well-established USA-based provider of electrical products, systems and solutions for industrial process heating and temperature management. It serves a broad range of end markets. It has five manufacturing facilities; three in North America, one in France and one in China. Chromalox is led by a strong, long-serving executive team, who will remain with the business following the acquisition.

Chromalox is closely related to the Spirax Sarco Steam Specialties business in delivering thermal energy management solutions to its customers mainly through direct sales. It is also highly complementary to the Steam Specialties business. Chromalox will expand Spirax's total addressable market by £2.1 billion to £7.9 billion. It will form part of the Spirax Sarco business group and be reported as a separate segment within that business.

In the year ending 30th September 2016, Chromalox recorded revenues of US$201 million (£155 million), EBITDA of US$43 million (£33 million) and EBIT of US$37 million (£28 million). In 2016, 78% of the company's revenues were in North America, with 11% in Europe and 11% in Asia Pacific. At 30th September 2016, Chromalox's gross assets were US$185 million (£142 million).

Spirax Sarco will invest in Chromalox to strengthen its direct sales channels globally; leverage its worldwide footprint to grow Chromalox's presence outside of its core markets in the USA; and support the company's research and development programme to ensure that it continues to deliver innovative new products to customers.

The purchase will be financed from new debt facilities supplied by Spirax's existing banks. Completion is subject to regulatory approval of the transaction by the merger control authority in the USA. These conditions are expected to be satisfied during the current quarter.

Nicholas Anderson, Chief Executive of Spirax-Sarco Engineering plc, said: "We are delighted to bring Chromalox, its management and employees into the Spirax Sarco family. As we invest in strengthening the company's direct sales and leverage Spirax Sarco's global footprint and expertise, Chromalox will enhance our growth and provide sustainable value creation for customers and shareholders."

Spirax Sarco has its headquarters in Cheltenham. It employs 5,900 people worldwide, including 1,000 people in the town. The company is listed in Punchline's top 100 biggest employers list at number eight.

It was announced last week that Spirax Sarco was supporting Cheltenham Science Group , which will encourage young people to consider careers in STEM.