Spirax-Sarco Engineering PLC — Share Issue/Capital Change 2013

Jan 22, 2013

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RNS Number : 1234W

Spirax-Sarco Engineering PLC

22 January 2013

22nd January 2013

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 31st March 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.

Enquiries:

Mark E Vernon, Chief Executive

David Meredith, Director Finance

Tel:  01242 535234

About Spirax Sarco

Spirax-Sarco Engineering plc is the world leader in both steam system management and peristaltic pumping. The Company provides a broad range of fluid control products, engineered packages, site services and systems expertise for its diverse range of over 100,000 industrial and institutional customers. The Company helps its customers to optimise production capacity, reduce energy costs and emissions, improve product quality and enhance the safety of their operations.  Spirax Sarco is headquartered in Cheltenham, England, has strategically located manufacturing plants around the world and employs approximately 4,700 people, of whom around 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

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