Spirax-Sarco Regulatory News (SPX)

30th November 2016

Spirax Sarco acquires Aflex Hose Limited for £61.4 million

Spirax-Sarco Engineering plc (Spirax Sarco), the world leader in the control and efficient use of steam, and in peristaltic pumping and associated fluid path technologies, announces that it has acquired Aflex Hose Limited and its subsidiary Aflex Hose USA LLC (Aflex) for £61.4 million. 

Aflex, based in Halifax, UK and with a sales and assembly operation in Pennsylvania, USA, specialises in the design and manufacture of PTFE-lined flexible hoses for the pharmaceutical, food, chemical and automotive industries. The business will be integrated into the Watson-Marlow Fluid Technology Group (WMFTG). We are pleased that Rod Anderson, a founder, will continue as a technical advisor and that senior management will remain with the business.

Aflex is highly synergistic with, and a natural extension to, the WMFTG fluid path product portfolio and further strengthens WMFTG's already strong global presence in the biotechnology, pharmaceutical, industrial, chemical and food & beverage sectors. Aflex utilises patented, market-leading technology to produce PTFE-lined flexible hoses, which outperform other PTFE and standard hose types within the most demanding applications, ensuring the highest levels of chemical resistance, superior flexibility and sterility. Aflex's premium PTFE-lined hoses complement our FlowSmart silicone hoses and WMFTG's other fluid path products, as part of our strategy to provide a complete value-added hose and tubing range.

The Aflex brand has a well-established worldwide reputation and the company had net sales of over £23 million in their last financial year, ended August 2016, with underlying EBITDA of £6 million. Post completion, Spirax Sarco will invest in Aflex to further develop its products and routes to market.

The purchase consideration is on a debt free and cash free basis, and will be financed from Spirax Sarco's existing resources. The acquisition will have a negligible impact on Group earnings in the current year but is expected to be a positive contributor from 2017 onwards.

Enquiries:

Nicholas Anderson, Chief Executive

Kevin Boyd, Group Finance Director

Tel: 01242 535234

About Spirax Sarco

Spirax-Sarco Engineering plc is the world leader in each of its two businesses, Spirax Sarco for steam specialties and Watson‑Marlow Fluid Technology Group for niche peristaltic pumps and associated fluid path technologies. The steam specialties business provides a broad range of fluid control products, engineered packages, site services and systems expertise for a diverse range of industrial and institutional customers. The company helps its customers to improve production efficiency, reduce energy costs, water usage and emissions, improve product quality and enhance the safety of their operations. Watson-Marlow Fluid Technology Group offers the ideal solution for a wide variety of demanding fluid path applications with highly accurate, controllable and virtually maintenance free pumps and associated technologies. The Group is headquartered in Cheltenham, England, has strategically located manufacturing plants around the world and employs approximately 5,000 people, of whom around 1,300 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