Spirax-Sarco in negotiations on £225.5m acquisition
By Matt Hall | 4th July 2022
Cheltenham-based Spirax-Sarco Engineering plc, the thermal energy management and niche pumping specialist, has announced that it has entered into exclusive negotiations with a view to acquiring a European industrial electric heating group for £225.5m.
The Vulcanic group of companies (Vulcanic), is being acquired by Spirax from Qualium, a French private equity company.
Vulcanic was established in 1973, and is said to be the largest supplier in Europe of bespoke industrial electric heating solutions.
The business is headquartered in Paris, France, with ten manufacturing facilities worldwide and more than 700 employees, of whom almost 90 per cent are based in the Europe, Middle East and Africa (EMEA) region.
It is said that Vulcanic will support the delivery of growth in Spirax-Sarco's Electric Thermal Solutions (ETS) business through its existing customers, products and operational footprints and will complement it's existing Chromalox business which is mostly focused on the Americas region.
Vulcanic operates a direct sales model to end users and Original Equipment Manufacturers, as well as contractors, and serves a range of markets aligned to the core market sectors of ETS.
As part of ETS, it is hoped Vulcanic will play a significant role in supporting the group's drive to help customers decarbonise their critical industrial processes through electrification, for which there is said to be already strong demand from European customers.
Upon completion of information and consultation procedures with employee representatives, the transaction will require certain regulatory approvals in France and by the merger control authority in Germany. These conditions are expected to be satisfied during the third quarter of this year. The consideration will be financed through an acquisition bank facility.
Nicholas Anderson, group chief executive of Spirax-Sarco Engineering plc, said: "We are looking forward to welcoming colleagues from Vulcanic into our group.
We have been following Vulcanic for some time and believe the acquisition represents an excellent opportunity to broaden our addressable market and further deploy our industry leading technologies in Europe.
"Vulcanic's existing strength and scale in Europe - with further investment by our Group - will provide a fantastic platform for growth, especially for our recently launched portfolio of TargetZero solutions, which electrify heat generation for industrial processes to support our customers' decarbonisation objectives."
The acquisition of Vulcanic, subject to customary closing adjustments, is expected to be accretive to group earnings in 2022.
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