Last checked at 4 Aug 2015 07:00
4th August 2015
Spirax Sarco announces the disposal of M&M International Srl
Spirax-Sarco Engineering plc, the world leader in the control and efficient use of steam, and in peristaltic pumping and associated fluid path technologies, announces the disposal of M&M International Srl (M&M) on 3rd August 2015 to Rotork plc for a total cash consideration of €9.7 million (£6.8 million) on a debt free, cash free basis.
M&M manufactures piston actuated valves and solenoid valves in Bergamo, Italy and today channels close to 15% of its production through Spirax Sarco's global sales and distribution network. This company was acquired in 2000 and has delivered a value accretive return on investment. The disposal follows a strategic review that concluded M&M's lower strategic fit with the Group limited our ability to improve their sales growth rates and profitability.
The disposal will result in a small net profit, to be recognised in the second half; excluded from adjusted operating profit but included in reported statutory profit. 2014 sales of M&M were €8.9 million and operating profit was €1.5 million (respectively £7.1 million and £1.2 million at 2014 average exchange rates).
Enquiries:
Nicholas J Anderson, Chief Executive
David Meredith, Director Finance
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 4,800 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