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
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
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
-
The top stocks in the FTSE 100After a year of strong returns for the UK’s flagship index, which FTSE 100 stocks have posted the best performance in 2024?
-
A junior ISA could turn your child’s pocket money into thousands of poundsPersuading your child to put their pocket money in a junior ISA might be difficult, but the pennies could quickly grow into pounds – and teach them a valuable lesson about money
