Valve engineering group Rotork has acquired the entire share capital of the operating companies of the Schischek group of companies, which design, manufacture and sell explosion-proof electric actuators.
The acquisition will be made for €41m, which will be paid using cash reserves and committed bank facilities. Rotork will also be assuming net debt of €1.3m. The sum of €4.1m will be held in escrow for 12 months as security for warranties under the sale agreements.
Schischek's operating profit in 2012 is expected to be around €5.5m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Peter France, Chief Executive, said: "Schischek is an excellent addition to Rotork's Controls division. Schischek's explosion-proof products, which are highly regarded for their quality and reliability, will enhance our range of electric actuators and enlarge our addressable market."
The main sites of Schischek are in Langenzenn near Nuremberg in Southern Germany and Lutzenberg in Switzerland. The acquisition has been made to enhance Rotork's existing range of explosion-proof actuators and provide it with exposure to an attractive new end market.
Schischek will become part of Rotork's Controls division. Roland Graf, the current Managing Director of Schischek, will remain in his role following the acquisition, the group said.
NR
-
Should you invest in UK equities?The FTSE 100 hit a record high this week, but UK equities remain unloved and undervalued compared to their global and US peers. Should you snap them up at a discount?
-
State pension errors: DWP urged to check for mistakes among divorced peopleFormer pensions minister Steve Webb says there are a high number of divorced women on low state pensions. Now MPs want the DWP to check if there were any errors in “potentially underpaying men and women who are divorced”.
