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
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
