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Gloucestershire Business News

Firm reveals near £140 million takeover

A major takeover deal involving one of Gloucestershire's biggest companies has been confirmed.

The engineering business revealed last month (February) it was in talks to buy a French-owned firm for the mind-boggling sum of £139 million (€158 million).

Cheltenham-headquartered Spirax Sarco has now revealed the deal has gone through and it is the new owner of Thermocoax.

Spirax Sarco, which employs 1,100 staff in Gloucestershire, said the addition to its portfolio further strengthened its position in Europe and America, where Paris-headquartered Thermocoax already has manufacturing facilities.

The news comes just days after its end of year results for 2018 revealed revenues of £1.153billion, a 15 per cent increase on last year and seven per cent increase in organic sales growth.

"Spirax‐Sarco Engineering plc, the thermal energy management and niche pumping specialist, is pleased to announce that it has now signed a binding definitive agreement to acquire Thermocoax Developpement and all of its group companies (Thermocoax) from, amongst others, Chequers Capital and TCR Capital for a cash‐free, debt‐free consideration of €158 million (£139 million)," said a statement from Nicholas Anderson, group chief executive of Spirax Sarco Engineering plc, released this morning (March 15).

"Signature of this agreement follows the conclusion of exclusive negotiations announced on 18th February 2019.

"As previously stated, the transaction will require certain regulatory approvals in France, Germany and the USA. These regulatory approvals and completion are expected during the second quarter of the year."

Read more: £139 million takeover deal in the offing 

Speaking before the deal was confirmed, Mr Anderson said: "We believe that the global Spirax Sarco footprint will allow both businesses to expand more rapidly into new geographic areas providing sustainable value creation for customers and shareholders."

Spirax Sarco Engineering plc, is described as "a world leader in the control and efficient use of steam, electrical thermal energy solutions and peristaltic pumping and associated fluid path technologies".

Thermocoax is a leading designer and manufacturer of "highly engineered electrical thermal solutions for critical applications in high added value industries".

It has three manufacturing facilities in Normandy, one in Heidelberg, Germany, and one in Georgia, USA.

Read more: Revenue soars to more than £1billion at Cheltenham-based firm 

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