Spirax Sarco acquires the Steam Business of its main Indonesian Distributor for total consideration of £1.6 million
Spirax-Sarco Engineering plc announces that, through its newly formed subsidiary company, PT Spirax‑Sarco Indonesia ("Spirax Indonesia"), it has acquired the steam speciality business and assets of PT Petrolog MUM ("Petrolog"), based in Jakarta, Indonesia.
Petrolog is Spirax Sarco's distributor in the Java region of Indonesia and has, during the last 23 years, grown the Group's sales in this emerging industrial market. Indonesia is an expanding market with good future growth prospects that will be enhanced by our direct sales approach. Spirax Indonesia will be well positioned to assist its customers to improve the costs and environmental impacts of operating their steam systems. We expect that Spirax Indonesia will start trading by 1st January 2014 following a short transition period.
The total purchase consideration of £1.6 million will be met from existing Group resources. £0.9 million will be paid on successful completion of the business transfer and the balance paid, subject to conditions being met, over the next five years. The acquisition is expected to contribute to group earnings from 2014 onwards.