Spirax-Sarco to buy U.S. electrical products provider Chromalox for $415m
Chromalox serves a broad range of end markets with around 70% of sales being addressed via its direct salesforce, with the remainder going through distributors.
Around two thirds of its sales are recurring revenue. It has five manufacturing facilities; three in North America, one in France and one in China.
In the year to the end of September 2017, the business - which derives around 18% of its sales from oil and gas end markets - generated revenues of $201m, earnings before interest, taxes and depreciation of $43m and earnings before interest and taxes of $37m.
The purchase consideration will be financed from new debt facilities supplied by Spirax's existing banks and Chromalox's executive team will remain with the business post acquisition. ■