Spectris plc (LON: SXS), the productivity-enhancing instrumentation and controls company, today announced that it has agreed with Voith GmbH & Co. KGaA for Voith to acquire BTG Group from Spectris for a total gross cash consideration of €319 million (£283 million). The sale is in line with Spectris’ strategy to simplify and focus our portfolio and to concentrate on developing our presence in specific high-growth end markets.
The transaction is subject to customary closing conditions and regulatory approvals, with completion expected to take place in the fourth quarter. Subject to the completion of the disposal, the proceeds will be used to further strengthen Spectris’ balance sheet ahead of investing in growth opportunities, in line with our strategy, and then be deployed in accordance with the capital allocation approach as set out at our Capital Markets Day in June 2019.
BTG, part of Spectris’ Industrial Solutions segment, provides specialised measuring instruments, software and services to customers to help deliver improved operational performance, cost management and enhanced quality for the pulp and paper industry. In this context, Spectris believes BTG’s next stage of development can be better fulfilled under Voith’s ownership, given its notable presence in the global paper market.
As at 30 June 2019, the book value of BTG’s gross assets amounted to £140.3 million. The adjusted EBITDA generated by BTG for the year ended 31 December 2018 was £24.5 million.
Commenting on the transaction, Andrew Heath, Spectris Chief Executive, said:
“The sale of BTG represents our first step in executing our strategy for a more focused business and delivers compelling value for shareholders. Voith is a highly respected player in the pulp and paper market and BTG is highly complementary to their product offering. I would like to take this opportunity to thank all of our BTG employees for their contribution to Spectris over the years and wish them well in the next stage of their journey.”