Spirax-Sarco buys Aflex Hose for £61.4m

30th Nov 2016 08:02

(ShareCast News) - Spirax-Sarco Engineering has acquired Aflex Hose and its subsidiary Aflex Hose USA for £61.4m.The purchase consideration is on a debt and cash free basis and will be financed from Spirax's existing resources. It is expected to have a negligible impact on group earnings in the current year but to contribute positively from 2017 onwards.Aflex is based in Halifax, in the UK, with a sales and assembly operation in Pennsylvania, USA, and specialises in the design and manufacture of PTFE-lined flexible hoses for the pharmaceutical, food, chemical and automotive industries. Spirax, which provides steam and industrial fluid control solutions, said the business will be integrated into the Watson-Marlow Fluid Technology Group (WMFG)."Aflex is highly synergistic with, and a natural extension to the WMFTG fluid path product portfolio and further strengthens WMFTG's already strong global presence in the biotechnology, pharmaceutical, industrial, chemical and food & beverage sectors," Spirax said.In its last financial year ended August 2016, Aflex generated net sales of more than £23m, with underlying earnings before interest, taxes, depreciation and amortisation of £6m.At 0808 GMT, Spirax shares were down 0.6% to 4,176p.