Rotork snaps up subsea specialist Bifold

28th Aug 2015 07:57

(ShareCast News) - Industrial components manufacturer Rotork took advantage of the depressed market environment by acquiring what it described as a leading manufacturer of components for the oil and gas industry.The Bath-based outfit was to pay a total consideration of up to £125m for Manchester-based Bifold, on a cash-free and debt-free basis, which has expertise in a number of niche sectors such as subsea and wellhead control systems.Rotork would pay £115m upon completion of the purchase and £10m deferred for up to two years based on achieving specific financial targets."Whilst the current market remains challenging, and is anticipated to remain so in the short term, the timing of this acquisition will allow us to position the company for the long term growth opportunities this market presents," management said in a statement.The acquistion - which followed other recent transactions in the sector - of the 300-person strong company was to be financed from new committed debt facilities.Over the 12 months to 31 August Manchester-based Bifold was expected to generate EBITDA of £7.6m on revenues of £37.7m, down from the £10.2 and £41m, respectively, seen in 2014.Rotork boss Peter France emphasised that the purchase would strengthen his company´s position in the flow-control sector and broaden its product protfolio.