Spirax sells HygroMatik unit to Italy's Carel for €59m
By Frank Prenesti
Date: Monday 03 Dec 2018
(Sharecast News) - Spirax-Sarco Engineering said it had sold its German HygroMatik unit to Italian firm Carel Industries for €59m (£52.3m).
The profit on disposal, after relevant fees, will be excluded from adjusted operating profit but included in reported statutory profit in the group's financial results for 2018, Spirax said.
The deal, made on a debt free, cash free basis, represented a trailing EBITDA multiple of 12.5.
HygroMatik, headquartered near Hamburg, makes commercial and industrial air humidification equipment for the public buildings, spa and wellness sectors.
"HygroMatik joined the Spirax Sarco Group in 1988 but due to limited strategic fit has always operated separately from the steam specialties division in which it is reported," Spirax said.
"This low level of integration limits our ability to improve sales growth while maintaining HygroMatik's excellent profitability."
In the year to end-December 2017, HygroMatik's sales were £13m, EBITDA £4.1m and operating profit £3.9m.
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