Spirax-Sarco Engineering plc (LON:SPX), the world leader in the control and efficient use of steam, electrical thermal energy solutions and peristaltic pumping and associated fluid path technologies, today announced the unconditional disposal of HygroMatik GmbH (HygroMatik) to Carel Industries S.p.A. for a total cash consideration of €59.0 million (£52.3 million) on a debt free, cash free basis, representing a trailing EBITDA multiple of 12.5.
HygroMatik, headquartered near Hamburg Germany, is one of the leading manufacturers and brands in premium commercial and industrial air humidification equipment in Europe with a strong position in the public buildings, spa and wellness sectors. HygroMatik joined the Spirax Sarco Group in 1988 but due to limited strategic fit has always operated separately from the Steam Specialties division in which it is reported. This low level of integration limits our ability to improve sales growth while maintaining HygroMatik’s excellent profitability.
The profit on disposal, after relevant fees, will be excluded from adjusted operating profit but included in reported statutory profit in the Group’s financial results for 2018. In the year ended 31st December 2017, HygroMatik’s sales were £13.0 million, EBITDA was £4.1 million and operating profit was £3.9 million all translated at the 2017 average euro exchange rate of 1.15 euro to the pound.
Nicholas Anderson, Group Chief Executive of Spirax‐Sarco Engineering plc, commented:
“HygroMatik is a high quality company and has been an excellent member of the Group for the last 30 years. I am delighted that they will now join Carel, where the better strategic fit should enable even stronger performance. I would like to thank all the HygroMatik employees for their dedication and contributions, wishing them continued success with their new owners.”