Rotork acquires Fairchild Industrial for $75.8m

FTSE 250 engineering group Rotork has acquired Fairchild Industrial Products for a net consideration of $75.8m.

The acquisition is payable in cash and will be financed from existing reserves. $7.7m of the total sum will be deferred and held in escrow for two years.

Fairchild, an asset-light company with a similar outsourced model to Rotork, reported revenue of $21.1m and profit before interest and amortisation of $6.3m for the year to 31 December 2010.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues 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

Sign up

Gross assets at the end of 2010 were $42m, which included $36m of goodwill and intangible assets that will be reviewed as part of the fair value accounting for the acquisition.

Rotork group chief executive Peter France said: "The acquisition of Fairchild will strengthen our presence in the global flow control market and broaden the scope of the group's activities whilst remaining close to our core competencies."

NR