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.

MoneyWeek

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

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

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."

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.