FTSE250 firm acquires manufacturer in £61.4m deal
A HALIFAX manufacturer has been acquired in a £61.4m deal for the group which includes its US subsidiary.
Cheltenham-based Spirax-Sarco Engineering, a FTSE250 manufacturer of steam management systems has acquired the UK and US businesses of Aflex Hose. It intends to invest in the businesses post-completion to further develop its products and routes to market.
Based in Halifax, Aflex designs and manufactures flexible hoses for the pharmaceutical, food, chemical and automotive industries. Its US business focuses on sales an assembly operations.
The business will be integrated into the Watson-Marlow Fluid Technology Group and one of the founders, Rod Anderson, will continue as a technical advisor. Senior management will remain with the business.
Spirax-Sarco said Aflex was “highly synergistic” with its business and strengthens its global presence in the biotechnology sectors.
The Aflex brand has a well-established worldwide reputation and the company had net sales of over £23m in their last financial year, ended August 2016, with underlying EBITDA of £6m.
Spirax-Sarco said the acquisition would be financed from its existing resources and wuld have a “negligible impact” on the group earnings this year, but will be a “positive contributor” from 2017 onwards.
Spirax-Sarco was founded in 1888 and first listed on the London Stock Exchange in 1959. It turned over £667m in 2015.
A team from Deloitte M&A Advisory advised the shareholders of Aflex. It was led by David Frith and included Matthew Nicholson and Maninder Minhas.
Rod Anderson, founder and majority shareholder said: “The sale of Aflex Hose was not easy, with many difficult problems to overcome along the way. Without the calm, professional assistance provided by the Deloitte and Pinsent Mason teams to guide us through, the successful sale of Aflex to Spirax Sarco would not have been possible.”
David Frith M&A advisory partner at Deloitte in Leeds, said: “We are delighted to have advised Aflex, a high profile engineering business in the region, on such a transformational transaction.
“This deal showcases the market leading engineering capabilities present in Yorkshire and we believe that Spirax Sarco will be an excellent home for Aflex and wish the business every success in the future.”
