Skip navigation

Gloucestershire Business News

Spirax-Sarco to acquire US thermal energy specialist

Gloucestershire-based Spirax-Sarco Engineering plc is set to acquire a US thermal energy specialist.

Spirax-Sarco, the thermal energy management and niche pumping specialist, is headquartered in Cheltenham and has manufacturing plants around the world, employing more than 9,200 people.

The company has today announced that it has entered into a definitive agreement to acquire Durex International Corporation (Durex), a privately-owned US based specialist in custom electric thermal solutions for ultra-high criticality industrial equipment.

The consideration is $342.2 million on a cash and debt free basis, subject to customary closing adjustments. The transaction will be financed through acquisition bank facilities and will be accretive to group earnings in 2023. Following regulatory approval, completion is expected in October.

Durex was founded in 1980 and has close to 380 employees, most of whom are located at its headquarters and three manufacturing facilities in Cary, Illinois. In 2021, 89 per cent of its sales were to original equipment manufacturers (OEMs), which tend to be highly recurring in nature. Geographically, 87 per cent of sales were generated in North America and 12 per cent in Asia Pacific, with 60 per cent of total sales to OEMs in the semiconductor sector.

Durex has a strong track record of top line growth and profitability. For the 12 months to the end of August 2022, revenues were $74.5 million, EBITDA (earnings before interest, taxes, depreciation, and amortization) was $25.3 million and EBIT (earnings before interest and tax) was $23.5 million. For the full year ended 31st December 2021, revenues were US$61.7 million, EBITDA was US$18.7 million and EBIT was US$17.1 million.

Durex provides OEMs with custom-designed precision thermal solutions with embedded electric heating, cooling and sensing technologies.

Upon completion, Durex will form part of the group's Electric Thermal Solutions Business (ETS) which comprises Chromalox, Thermocoax and shortly Vulcanic.

Nicholas Anderson, group chief executive, Spirax-Sarco Engineering plc, said: "We are excited about this opportunity to further strengthen our ETS Business and look forward to welcoming colleagues from Durex into our group.

"We have great respect and admiration for Durex that has grown and developed under the skilful leadership of Ed Hinz, who founded the business over 40 years ago. Ed's impending retirement provided an excellent opportunity for us to broaden our capabilities in key target sectors, accelerating the development of our ETS business in line with our long-term plans."

Related Articles

Gloucestershire branch of Joules shuts despite £34m rescue deal Image

Gloucestershire branch of Joules shuts despite £34m rescue deal

Retail giant Next has saved the company from administration but numerous stores have still had to close

More than 817 people caught speeding in Gloucestershire last month Image

More than 817 people caught speeding in Gloucestershire last month

In November, 817 people were caught speeding at the seven priority sites visited by mobile speed cameras.

Gloucester Rugby players star in UK's biggest Advent calendar Image

Gloucester Rugby players star in UK's biggest Advent calendar

The calendar, to raise funds for Ed Slater and his family, will be displayed on the front of a huge building in Gloucester.

Rooftop Housing Group welcomes two new board members Image

Rooftop Housing Group welcomes two new board members

Rooftop Housing Group has appointed two new non-executive directors.

Copyright 2022 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.