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Spirax-Sarco Engineering to Acquire US Thermal Energy Specialist
Thursday 29 September 2022

UK-based thermal energy management and niche pumping specialist Spirax-Sarco Engineering plc (LSE: SPX) has entered into a definitive agreement to acquire US based custom electric thermal solutions specialist Durex International Corp, the company said.

Durex solutions are used for ultra-high criticality industrial equipment.

The consideration is USD 342.2m on a cash and debt free basis, subject to customary closing adjustments.

The transaction will be financed through acquisition bank facilities and will be accretive to group earnings in 2023. Following regulatory approval, completion is expected in October 2022.

Durex was founded in 1980 and has close to 380 employees most of whom are located at its headquarters and three manufacturing facilities in Cary, Illinois.

In 2021, 89% of its sales were to Original Equipment Manufacturers, which tend to be highly recurring in nature.

Geographically, 87% of sales were generated in North America and 12% in Asia Pacific, with 60% of total sales to OEMs in the Semiconductor sector.

Durex has a strong track record of top line growth and profitability. For the 12 months to 31st August 2022, revenues were USD 74.5m, EBITDA was USD 25.3m and EBIT was USD 23.5m.

For the full year ended 31st December 2021, revenues were USD 61.7m, EBITDA was USD 18.7m and EBIT was USD 17.1m.

Durex provides OEMs with custom-designed precision thermal solutions with embedded electric heating, cooling and sensing technologies.

These solutions are incorporated by the OEMs into complex equipment requiring precise thermal control, such as Semiconductor Wafer Fabrication Equipment.

Upon completion, Durex will form part of the Group's Electric Thermal Solutions Business which comprises Chromalox, Thermocoax and shortly Vulcanic.

Chromalox and Vulcanic will be the lead brands for electric process heating, including decarbonisation of industrial processes.

Spirax‚ÄźSarco Engineering plc is a thermal energy management and niche pumping specialist.
Date Published: 29/09/2022