Spirax-Sarco Engineering (LSE:SPX) PLC said it is in exclusive talks to buy the Vulcanic Group of Companies from Qualium, a French private equity company, for €261.7mln (£225.5mln) in cash.
Vulcanic is the largest supplier in Europe of bespoke industrial electric heating products. It has 10 manufacturing facilities worldwide and more than 700 employees. Almost 90% of its employees are based in the Europe, Middle East and Africa (EMEA) region.
The FTSE-100 group said Vulcanic will support the growth of its Electric Thermal Solutions (ETS) business, which is mainly focused in the EMEA region, and will complement its existing Chromalox business, which is mostly focused on the Americas region.
“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,” said Spirax-Sarco chief executive Nicholas Anderson.
In 2021, Vulcanic posted EBITDA of €17.6mln on revenues of €89.4mln.
Spirax-Sarco expects the acquisition to be earnings accretive in 2022.