Rotork plc Acquisition
Rotork p.l.c. ("Rotork"), the market leading actuator manufacturer and flow control company, today announces the acquisition of the entire share capital of the operating companies of the Schischek group of companies ("Schischek"). Schischek is a leader in the design, manufacture and sale of explosion-proof electric actuators, principally for the heating, ventilation, and air conditioning ("HVAC") market place.
Schischek was founded by Alexander Schischek and has its main sites in Langenzenn near Nuremberg in Southern Germany and Lutzenberg in Switzerland. The acquisition will enhance Rotork's existing range of explosion-proof actuators and provide Rotork with exposure to an attractive new end market.
The purchase price is €41 million which will be paid using cash reserves and committed bank facilities. Rotork will also be assuming net debt of €1.3m. The sum of €4.1 million will be held in escrow for 12 months as security for warranties under the sale agreements. Schischek's operating profit in 2012 is expected to be around €5.5 million.
Schischek will become part of Rotork's Controls division. Roland Graf, the current Managing Director of Schischek, will remain in his role following the acquisition.
Commenting on the acquisition Peter France, Chief Executive, said:
"Schischek is an excellent addition to Rotork's Controls division. Schischek's explosion-proof products, which are highly regarded for their quality and reliability, will enhance our range of electric actuators and enlarge our addressable market."