Acquisition to accelerate digital strategySource: RNS
24th January 2022
Acquisition to accelerate digital strategy
Spirax-Sarco Engineering plc, the multi-national thermal energy management and niche pumping specialist, announces that it has entered into a definitive agreement to acquire Cotopaxi Limited, a digitally enabled, global energy consulting and optimisation specialist, from Business Intelligence of Oriental Nations Corporation Ltd, for a consideration of £13.3 million, which is £12.8 million on a cash and debt free basis. The transaction will be funded from cash resources and is scheduled to complete following the satisfaction of limited conditions that the parties are confident will be fulfilled in a timely manner.
Cotopaxi, which comprises a team of 38 energy engineers and software specialists, was established in 2009 by its current Managing Director. From its UK base in Skelmersdale, it provides its global customer base with consulting, digital connectivity and monitoring of energy intensive processes, including steam. Cotopaxi's proprietary and customised software platform generates critical insights, which are used to help its industrial customers to reduce waste and drive efficiencies in their operations through more effective management of energy use. In the year ended 31st December 2020, Cotopaxi reported revenues of £2.2 million. Pre-pandemic revenues were £4.8 million.
Cotopaxi will be integrated within the Group's Steam Specialties business, comprising the leading product brands of Spirax Sarco and Gestra, which is focused on providing innovative, efficient and sustainable solutions for industrial steam customers. Cotopaxi's digital solutions experience in steam installations will accelerate Steam Specialties' objective to connect to its customers' steam systems and analyse their data. This will generate opportunities to identify and implement solutions to support steam system uptime, reduce waste and increase efficiency. Cotopaxi will benefit from increased market access for its software and services through Steam Specialties' direct sales capabilities in 67 countries.
Nicholas Anderson, Group Chief Executive of Spirax-Sarco Engineering said: "We are delighted to welcome the Cotopaxi team into our Group. The important role of digital technologies, which provide remote, real-time monitoring and data-driven insights has never been clearer than during the pandemic. The business is an excellent strategic fit for us, as we are both focused on improving the efficiency and sustainability of industrial steam use. The software, platforms and experience they bring, together with the insights derived from over a decade of data analysis, will be a key accelerator for the digitally enabled customer solutions we offer in our Steam Specialties business.
"Our immediate focus is on accelerating and improving our solutions for steam customers. The Cotopaxi team will also work closely with our digital transformation teams, to continue to develop and embed digital enablement and support customers in other parts of our Group."
Andrew Guthrie, Head of Investor Relations
Hazel Meldrum, Group Head of Corporate Communications
Spirax-Sarco Engineering plc
Tel: +44 01242 535035
About Spirax‐Sarco Engineering plc
Spirax‐Sarco Engineering plc is a thermal energy management and niche pumping specialist. It comprises three world‐leading businesses: Steam Specialties, for the control and management of steam; Electric Thermal Solutions, for advanced electrical process heating and temperature management solutions; and Watson-Marlow, for peristaltic pumping and associated fluid path technologies. The Steam Specialties and Electric Thermal Solutions businesses provide a broad range of fluid control and electrical process heating products, engineered packages, site services and systems expertise for a diverse range of industrial and institutional customers. Both businesses help their end users to improve production efficiency, meet their environmental sustainability targets, improve product quality and enhance the safety of their operations. Watson‐Marlow provides solutions for a wide variety of demanding fluid path applications with highly accurate, controllable and virtually maintenance-free pumps and associated technologies.
The Group is headquartered in Cheltenham, UK, has strategically located manufacturing plants around the world and employs over 8,500 people, including more than 2,000 direct sales and service engineers. Its shares have been listed on the London Stock Exchange since 1959 (symbol: SPX) and it is a constituent of the FTSE 100 and the FTSE4Good indices.
Further information can be found at www.spiraxsarcoengineering.com