Spirax-Sarco Engineering PLC Acquisition to accelerate digital strategy (2992Z)
24 January 2022 - 6:00PM
UK Regulatory
TIDMSPX
RNS Number : 2992Z
Spirax-Sarco Engineering PLC
24 January 2022
News Release
24(th) January 2022
Acquisition to accelerate digital strategy
Spirax-Sarco Engineering plc, the multi-national thermal energy
management and niche pumping specialist, announces that it has
entered into a definitive agreement to acquire Cotopaxi Limited, a
digitally enabled, global energy consulting and optimisation
specialist, from Business Intelligence of Oriental Nations
Corporation Ltd, for a consideration of GBP13.3 million, which is
GBP12.8 million on a cash and debt free basis. The transaction will
be funded from cash resources and is scheduled to complete
following the satisfaction of limited conditions that the parties
are confident will be fulfilled in a timely manner.
Cotopaxi, which comprises a team of 38 energy engineers and
software specialists, was established in 2009 by its current
Managing Director. From its UK base in Skelmersdale, it provides
its global customer base with consulting, digital connectivity and
monitoring of energy intensive processes, including steam.
Cotopaxi's proprietary and customised software platform generates
critical insights, which are used to help its industrial customers
to reduce waste and drive efficiencies in their operations through
more effective management of energy use. In the year ended 31(st)
December 2020, Cotopaxi reported revenues of GBP2.2 million.
Pre-pandemic revenues were GBP4.8 million.
Cotopaxi will be integrated within the Group's Steam Specialties
business, comprising the leading product brands of Spirax Sarco and
Gestra, which is focused on providing innovative, efficient and
sustainable solutions for industrial steam customers. Cotopaxi's
digital solutions experience in steam installations will accelerate
Steam Specialties' objective to connect to its customers' steam
systems and analyse their data. This will generate opportunities to
identify and implement solutions to support steam system uptime,
reduce waste and increase efficiency. Cotopaxi will benefit from
increased market access for its software and services through Steam
Specialties' direct sales capabilities in 67 countries.
Nicholas Anderson, Group Chief Executive of Spirax-Sarco
Engineering said: "We are delighted to welcome the Cotopaxi team
into our Group. The important role of digital technologies, which
provide remote, real-time monitoring and data-driven insights has
never been clearer than during the pandemic. The business is an
excellent strategic fit for us, as we are both focused on improving
the efficiency and sustainability of industrial steam use. The
software, platforms and experience they bring, together with the
insights derived from over a decade of data analysis, will be a key
accelerator for the digitally enabled customer solutions we offer
in our Steam Specialties business.
"Our immediate focus is on accelerating and improving our
solutions for steam customers. The Cotopaxi team will also work
closely with our digital transformation teams, to continue to
develop and embed digital enablement and support customers in other
parts of our Group."
Enquiries:
Andrew Guthrie, Head of Investor Relations
Hazel Meldrum, Group Head of Corporate Communications
Spirax-Sarco Engineering plc
Tel: +44 01242 535035
About Spirax--Sarco Engineering plc
Spirax--Sarco Engineering plc is a thermal energy management and
niche pumping specialist. It comprises three world--leading
businesses: Steam Specialties, for the control and management of
steam; Electric Thermal Solutions, for advanced electrical process
heating and temperature management solutions; and Watson-Marlow,
for peristaltic pumping and associated fluid path technologies. The
Steam Specialties and Electric Thermal Solutions businesses provide
a broad range of fluid control and electrical process heating
products, engineered packages, site services and systems expertise
for a diverse range of industrial and institutional customers. Both
businesses help their end users to improve production efficiency,
meet their environmental sustainability targets, improve product
quality and enhance the safety of their operations. Watson--Marlow
provides solutions for a wide variety of demanding fluid path
applications with highly accurate, controllable and virtually
maintenance-free pumps and associated technologies.
The Group is headquartered in Cheltenham, UK, has strategically
located manufacturing plants around the world and employs over
8,500 people, including more than 2,000 direct sales and service
engineers. Its shares have been listed on the London Stock Exchange
since 1959 (symbol: SPX) and it is a constituent of the FTSE 100
and the FTSE4Good indices.
Further information can be found at
www.spiraxsarcoengineering.com
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