Spirax-Sarco Engineering (LSE:SPX) signed a definitive agreement to buy Durex International Corporation, a specialist in custom electric thermal solutions (ETS) for ultra-high criticality industrial equipment.
The consideration for the privately-owned US company is US$342.2mln on a cash and debt-free basis, the thermal energy management and niche pumping specialist said in a statement.
Durex will accelerate the development of its ETS critical Original Equipment Manufacturers (OEM) business in "attractive market sectors and target application areas".
Illinois-based Durex was founded in 1980 and has around 380 employees. In 2021, 89% of its sales were to OEMs, which tend to be highly recurring in nature. The company provides OEMs with custom-designed precision thermal solutions with embedded electric heating, cooling and sensing technologies.
In the 12 months to 31 August 2022, Durex generated revenues of US$74.5mln and EBITDA of US$25.3mln.
The acquisition will be financed through bank facilities and will be accretive to earnings in 2023, Spirax-Sarco said, adding that completion is expected next month.
Commenting on the deal, Spirax-Sarco chief executive Nicholas Anderson said: "We are excited about this opportunity to further strengthen our ETS business and look forward to welcoming colleagues from Durex into our group.”
PLC