Spirax-Sarco Regulatory News (SPX)

News Release

3rd December 2018

Disposal of HygroMatik for €59.0 million (£52.3 million)

Spirax-Sarco Engineering plc, the world leader in the control and efficient use of steam, electrical thermal energy solutions and peristaltic pumping and associated fluid path technologies, announces the unconditional disposal of HygroMatik GmbH (HygroMatik) to Carel Industries S.p.A. for a total cash consideration of €59.0 million (£52.3 million) on a debt free, cash free basis, representing a trailing EBITDA multiple of 12.5.

HygroMatik, headquartered near Hamburg Germany, is one of the leading manufacturers and brands in premium commercial and industrial air humidification equipment in Europe with a strong position in the public buildings, spa and wellness sectors. HygroMatik joined the Spirax Sarco Group in 1988 but due to limited strategic fit has always operated separately from the Steam Specialties division in which it is reported. This low level of integration limits our ability to improve sales growth while maintaining HygroMatik's excellent profitability.

The profit on disposal, after relevant fees, will be excluded from adjusted operating profit but included in reported statutory profit in the Group's financial results for 2018. In the year ended 31st December 2017, HygroMatik's sales were £13.0 million, EBITDA was £4.1 million and operating profit was £3.9 million all translated at the 2017 average euro exchange rate of 1.15 euro to the pound.

Nicholas Anderson, Group Chief Executive of Spirax‐Sarco Engineering plc, commented:

"HygroMatik is a high quality company and has been an excellent member of the Group for the last 30 years. I am delighted that they will now join Carel, where the better strategic fit should enable even stronger performance. I would like to thank all the HygroMatik employees for their dedication and contributions, wishing them continued success with their new owners." 

Enquiries:

Nicholas Anderson, Group Chief Executive

Kevin Boyd, Chief Financial Officer

Tel: 01242 535234

Spirax-Sarco Engineering plc comprises two world-leading businesses, Spirax Sarco for steam and electrical thermal energy solutions and Watson-Marlow Fluid Technology Group for niche peristaltic pumps and associated fluid path technologies. Spirax Sarco provides a broad range of fluid control and electrical process heating products, engineered packages, site services and systems expertise for a diverse range of industrial and institutional customers. The business helps its end users 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 over 7,400 people, of whom over 1,600 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 

Carel Industries S.p.A. is a leading provider of advanced energy efficient control solutions and components for air conditioning (HVAC) and refrigeration units and systems and humidification units. Carel is listed on the Milan Stock Exchange.

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