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.
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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
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