Spirax-Sarco Regulatory News (SPX)

2 Oct 2009 08:30



2nd October 2009 

Spirax Sarco acquires Turkish Distributor

for initial consideration of £2.8 million 

Spirax-Sarco Engineering plc announces that, through its newly formed subsidiary company SPIRAX Inter Valf Sanayi ve Ticaret Limited Şirketi ("Spirax Intervalf"), it has acquired the business and assets of İnter Valf Sanayi ve Ticaret Limited Şirketi ("Intervalf"), based in Istanbul. 

Intervalf is Spirax Sarco's exclusive distributor for Turkey and has during the last 13 years grown the Group's share of the Turkish market. The Turkish industrial steam-using base that is the Group's premier market is expected to provide good future growth prospects. With the increased technical and market development that will now be provided, Spirax Intervalf will be well positioned to contribute to the Turkish Government's renewed focus on energy saving measures. The founders and current owners of Intervalf, together with all the current employees, will transfer with the business to Spirax Intervalf. 

The initial purchase consideration of Turkish Lira 6.7 million (£2.8 million), which will be met from existing Group resources, will potentially be increased by up to Turkish Lira 3.8 million (£1.6 million) through an earnout arrangement over the next three years. We expect the transaction to make a small positive contribution to Group earnings in the second half of 2009. 

About Spirax Sarco

Spirax-Sarco Engineering plc provides a broad range of fluid control products, engineered packages, site services and systems expertise for its diverse range of over 100,000 industrial and institutional customers. The Company helps its customers to optimise production capacity, reduce energy costs and emissions, improve product quality and enhance the safety of their operations. Spirax Sarco is headquartered in Cheltenham, England, has strategically located manufacturing plants around the world and employs approximately 4,200 people, of whom 1,200 are direct sales and service engineers. Its shares have been listed on the London Stock Exchange since 1959 (symbol: SPX). Further information can be found at www.spiraxsarcoengineering.com.

Contact details:

Mark Vernon  - Chief Executive

David Meredith - Director Finance

Spirax-Sarco Engineering plc

Charlton House

Cheltenham

Gloucestershire

GL53 8ER

Tel: 01242 521361

Fax: 01242 581470

www.SpiraxSarcoEngineering.com