Spirax-Sarco Engineering (LSE:SPX) PLC (SS) said it will buy Cotopaxi Ltd, a digitally enabled, global energy consulting and optimisation specialist, for £13.3mln to expand its digital strategy.
The thermal energy management and pumping specialist will use cash resources to fund the deal and it is scheduled to be completed following the “satisfaction of limited conditions”.
“The business is an excellent strategic fit for us, as we are both focused on improving the efficiency and sustainability of industrial steam use,” Nicholas Anderson, SS chief executive, said.
Cotopaxi, currently owned by Business-intelligence of Oriental Nations Corporation, has 38 energy engineers and software specialists.
It aims to reduce waste and improve efficiencies via more effective management of energy use for its industrial customers.
Cotopaxi had revenues of £2.2mln in the year ended 31 December 2020, compared with £4.8mln pre-pandemic.
Cotopaxi will be integrated within Spirax-Sarco’s steam specialties business, which provides innovative, efficient, and sustainable solutions for industrial steam customers, SS said.
This will generate opportunities to identify and implement solutions to support steam system uptime, reduce waste, and increase efficiency, Spirax said.
Cotopaxi will benefit from increased market access for its software and services through steam specialties' direct sales capabilities in 67 countries.