Spirax-Sarco Engineering PLC Spirax Sarco acquires assets of Hiter for £3.9 m (5656G)

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RNS Number : 5656G

Spirax-Sarco Engineering PLC

09 August 2016

August 9th 2016

Spirax Sarco acquires the assets of Brazilian valve manufacturer for GBP3.9 million

Spirax-Sarco Engineering plc, the world leader in the control and efficient use of steam, and in peristaltic pumping and associated fluid path technologies, announces that on July 1(st) it acquired the assets of the process control valve manufacturer, Hiter Indústria e Comércio de Controles Termo-Hidráulicos Ltda (Hiter), based in Sorocaba, Brazil. Hiter was a subsidiary of Pentair plc, which is listed on the New York Stock Exchange.

Hiter is highly synergistic with Spirax Sarco's successful Brazilian steam and process fluid applications business. The Hiter brand has a well established reputation in Brazil with a large installed base and had net sales of over GBP7 million in 2015. Following the acquisition, Spirax becomes the only significant manufacturer of both control and safety valves in Brazil.

Hiter has undergone significant change in recent years as part of Pentair's Valves & Controls segment, resulting in a December 2015 announcement to close the company effective March 2016. The assets have been acquired by a new Spirax subsidiary, Hiter Controls Engenharia Ltda, which will commence trading in the fourth quarter of 2016. It is anticipated that the start-up and pre-operating losses incurred in 2016 will reach GBP1.2 million on negligible sales. After re-establishing Hiter's market position during 2017, this business is forecast to make a positive contribution to Group earnings from 2018.

The total purchase consideration of GBP3.9 million was paid in cash from existing Group resources.

Enquiries:

Nicholas Anderson, Group Chief Executive

Kevin Boyd, Group Finance Director

Tel: [phone]

About Spirax Sarco

Spirax-Sarco Engineering plc is the world leader in each of its two businesses, Spirax Sarco for steam specialties and Watson--Marlow Fluid Technology Group for niche peristaltic pumps and associated fluid path technologies. The steam specialties business provides a broad range of fluid control products, engineered packages, site services and systems expertise for a diverse range of industrial and institutional customers. The company helps its customers to improve production efficiency, reduce energy costs, water usage and emissions, improve product quality and enhance the safety of their operations. Watson-Marlow Fluid Technology Group offers the ideal solution for a wide variety of demanding fluid path applications with highly accurate, controllable and virtually maintenance free pumps and associated technologies. The Group is headquartered in Cheltenham, England, has strategically located manufacturing plants around the world and employs approximately 4,800 people, of whom over 1,300 are direct sales and service engineers. Its shares have been listed on the London Stock Exchange since 1959 (symbol: SPX).

Further information can be found at www.spiraxsarcoengineering.com

This information is provided by RNS

The company news service from the London Stock Exchange

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August 09, 2016 02:05 ET (06:05 GMT)