Spirax-Sarco Engineering PLC (LON:SPX) on Monday said it had agreed to sell its HygroMatik GmbH unit to Carel Industries for €59mln.
HygroMatik, headquartered near Hamburg Germany, is one of the leading manufacturers and brands in premium commercial and industrial air humidification equipment in Europe.
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HygroMatik joined the Spirax Sarco Group in 1988 but due to limited strategic fit has always operated separately from the Steam Specialties division in which it is reported, the company said.
Spirax said this low level of integration had limited its ability to improve sales growth while maintaining HygroMatik's profitability.
"HygroMatik is a high-quality company and has been an excellent member of the Group for the last 30 years. I am delighted that they will now join Carel, where the better strategic fit should enable even stronger performance,” Spirax CEO Nicholas Anderson said in a statement.
Spirax-Sarco said the profit on disposal, after relevant fees, would be excluded from adjusted operating profit but included in reported statutory profit in the group's financial results for 2018. In the year ended 31 December 2017, HygroMatik's sales were £13.0mln, EBITDA was £4.1mln and operating profit was £3.9mln.