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RNS Number : 3420M
Spectris PLC
15 August 2011
15 August 2011
ACQUISITION OF OMEGA ENGINEERING FOR US$475 MILLION
Spectris plc, the productivity-enhancing instrumentation and
controls company, today announces that it has signed an agreement
to acquire the Omega Engineering business. The purchase
consideration of US$475 million (approximately GBP290 million), on
a debt and cash-free basis, will be met from cash and new bank
facilities and is subject to routine balance sheet adjustments.
Omega is a privately-held business which provides a broad range
of process measurement and control instrumentation to customers in
industrial and academic markets, selling directly to end users in
these sectors via catalogue, telephone and internet. The company
has a differentiated customer service model with emphasis on
providing high levels of quality, availability, customisation and
speed of delivery to a large base of customers who want a
convenient and reliable source for their small-scale process and
automation needs and R&D requirements. It is a leading
integrated, international, single-source supplier of highly
engineered products and customised solutions in the process
measurement and control industry, with a very strong brand, high
levels of repeat business, a defensible and resilient business
model and an unmatched reputation for meeting customer needs.
Headquartered in Stamford, Connecticut, USA, the company has
five manufacturing facilities and two distribution/sales facilities
and employs around 700 people. Founded in 1962, Omega has grown
steadily and now offers a diverse range of process measurement and
control products to measure temperature, pressure, flow, level,
strain, humidity, pH and conductivity. The company had sales of
$168 million (approximately GBP103 million) in 2010 and adjusted
operating profit before interest and tax of $39.6 million
(approximately GBP24 million) and was cash generative. The value of
gross assets acquired as at 31 December 2010 was $84.4 million
(approximately GBP52 million). The acquisition is expected to
enhance adjusted earnings per share in the first full financial
year of ownership. We expect the acquisition to complete in Q4 on
satisfaction of customary closing conditions including US and
German antitrust clearances.
John O'Higgins, Chief Executive of Spectris, commented: "Trading
since the time of our last update on 15 July has remained in line
with our expectations. We are delighted to have reached agreement
to acquire the Omega Engineering business, which will bring a
significant strategic growth platform to our Industrial Controls
segment."
A conference call for analysts and investors will be held at
08.00 (UK time) today to discuss this statement. To access the
call, please dial +44 (0)20 3140 0722. A presentation on the
acquisition can be downloaded from our website at
http://www.spectris.com/presentations.aspx
ENDS
Enquiries: John O'Higgins, Chief Executive, Tel: 01784 470470
Spectris plc
Clive Watson, Group Finance Director, Tel: 01784 470470
Spectris plc
Richard Mountain, Financial Dynamics Tel: 020 7269 7291
About Spectris
Spectris plc is a leading supplier of productivity-enhancing
instrumentation and controls. The company's products and
technologies help customers to improve product quality and
performance, improve core manufacturing processes, reduce downtime
and wastage, and reduce time to market. Its global customer base
spans a diverse range of end user markets.
Spectris operates across four business segments which reflect
the applications and industries it serves: Materials Analysis, Test
and Measurement, In-line Instrumentation and Industrial Controls.
Headquartered in Egham, Surrey, the company employs over 6,400
people, with offices in 30 countries.
For more information, visit www.spectris.com
Copies of this announcement are available from the company's
registered office at
Station Road, Egham, Surrey TW20 9NP and on the company's
website at www.spectris.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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