Spirax-Sarco steams ahead with £6.5m acquisition

28th Sep 2015 14:17

(ShareCast News) - Spirax-Sarco Engineering has acquired the steam distribution business of its Colombian distributor, Casaval SA, for a cash consideration of £6.5m.Spirax said Colombia is an attractive market, with a broad base of steam using industries, adding that Casaval, which has represented Spirax Sarco for over 20 years, has delivered strong growth and established a good presence in the market for the Spirax brand.The industrial engineering group said its new local operating company, Spirax-Sarco Colombia S.A.S., will capitalise on the good growth opportunities for industrial and commercial steam systems, products and solutions in Colombia."In addition to further developing the attractive market in Colombia, our new operation will form a strategically important hub for the expansion of our business in Northern Latin America," it said.Spirax said the purchase consideration was paid on closing from existing debt facilities and it expects the business will make an immediate small contribution to group earnings.At 1422 BST, Spirax shares were up 0.1% at 2.825p.