Steam pumps and valves specialist Spirax Sarco Engineering PLC (LON:SPX) is in exclusive talks to acquire Thermocoax, an electrical thermal solutions developer.
The asking price is said to be £139mln, with Spirax acquiring the company on a debt-free basis from its private equity owners.
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Thermocoax is headquartered near Paris, France and has three manufacturing facilities in Normandy, one in Georgia, USA and a further facility in Heidelberg, Germany.
Spirax Sarco said that it expects Thermocoax will become part of its Chromalox business and will significantly enhance its electrical process heating business, especially in Europe.
In 2018, Thermocoax recorded revenues of €49.8 million (£43.9 million) and underlying earnings (EBITDA) of €12.9 million (£11.4 million). At the end of the year, its gross assets were €94.6 million (£83.0 million).
“The combination of Thermocoax and Chromalox will significantly strengthen our electrical thermal energy solutions presence in Europe while expanding our technology and product offering worldwide,” said Nicholas Anderson, the group chief executive of Spirax Sarco.
“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," he added.