Spirax Sarco acquires 30% equity stake in Econotherm (UK) Limited for £1 million
Spirax-Sarco Engineering plc announces that it has acquired 30% of the equity of Econotherm (UK) Limited, plus an option to acquire the remaining equity in the period between 1st January 2016 and 31stMarch 2019.
Econotherm, based in Bridgend UK, specialises in the design and manufacture of heat pipes and associated heat exchangers for industrial waste heat recovery and other industrial applications, utilising unique and patented technology. Heat pipes have significant heat transfer advantages that enable efficient recovery and re-use of valuable waste heat in applications where traditional heat exchangers are unsuitable. Spirax Sarco has been working closely with Econotherm for the last two years in the development of this new technology for steam related applications, and has secured worldwide sole and exclusive sales, marketing and manufacturing rights for the resulting heat exchangers.
We believe this technology opens up new markets that are highly complementary to our growing heat transfer solutions business and that the Group can now further assist its customers to significantly reduce their energy costs and environmental impacts in applications that are too arduous for conventional heat exchange technology.
The purchase consideration of £1 million has been paid in cash from existing Group resources. The transaction is expected to make a small positive contribution to Group earnings from 2014, increasing each year thereafter. Econotherm's net debt at completion was immaterial.