Rotork plc Acquires Young Tech Co., Ltd
Rotork p.l.c. ("Rotork"), the market-leading actuator manufacturer and flow control company, today announces that it has agreed to purchase the entire share capital of Young Tech Co., Ltd. ("YTC"). The acquisition is subject to regulatory approval.
YTC, based in Seoul, Korea, is a leading manufacturer and supplier of valve positioners and accessories.
The total consideration payable is £64 million in cash, of which £60 million is payable upon completion, and £4 million is deferred for 12 months and contingent on certain performance criteria. The purchase will be funded from cash reserves and existing bank facilities. YTC is an asset-light company with a similar outsourced business model to Rotork. In its accounts for the year ended 31 December 2013 YTC reported revenue of £16.5m and operating profit of £6.0 million. Gross assets, excluding cash and cash equivalents, at 31 December 2013 were £17 million.
YTC's extensive range of instrumentation includes electro-pneumatic, pneumatic and "smart" positioners for use in the operation of pneumatic actuators. YTC products are certified for use in international markets.
The acquisition of YTC is in line with Rotork's strategy of extending its offering of flow control and pressure control products. The acquisition further enhances and expands Rotork's position in the Asia-Pacific market.
YTC will become part of Rotork's Instruments division and the existing management team of YTC will remain following the acquisition.
Commenting on the acquisition, Peter France, Chief Executive, said:
"YTC is an excellent addition to our Instruments division. It is a highly respected manufacturer of instrumentation products which are complementary to Rotork's existing portfolio of products. This acquisition will enhance our range of instrumentation products and further enlarge our addressable market."