Cheltenham headquartered Spirax Sarco on acquisition trail again

Spirax Sarco

Spirax-Sarco Engineering plc, the Cheltenham-headquartered thermal energy management and niche pumping specialist, has entered into exclusive negotiations with a view to acquire the Vulcanic Group of Companies (Vulcanic) from Qualium, a French private equity company, for €261.7 million (£225.5 million).

Vulcanic is a European industrial electric heating group, established in 1973, and is the largest supplier in Europe of bespoke industrial electric heating solutions.  Vulcanic is headquartered in Paris, France, with 10 manufacturing facilities worldwide and more than700 employees, of whom almost 90% are based in the Europe, Middle East and Africa (EMEA) region. 

Vulcanic will support the delivery of growth in Spirax Sarco’s Electric Thermal Solutions (ETS) Business through its existing customers, products and operational footprints which are mostly in the EMEA region and will complement its existing Chromalox Business which is mostly focused on the Americas region.  Vulcanic operates a direct sales model to end users and Original Equipment Manufacturers, as well as contractors, and serves a range of markets aligned to the core market sectors of ETS.

Nicholas Anderson, Group Chief Executive, Spirax-Sarco Engineering plc, said: “We are looking forward to welcoming colleagues from Vulcanic into our Group.  We have been following Vulcanic for some time and believe the acquisition represents an excellent opportunity to broaden our addressable market and further deploy our industry leading technologies in Europe.  Vulcanic’s existing strength and scale in Europe – with further investment by our Group – will provide a fantastic platform for growth, especially for our recently launched portfolio of TargetZero solutions, which electrify heat generation for industrial processes to support our customers’ decarbonisation objectives.”  

In the year ended 31st December 2021, Vulcanic recorded revenues of €89.4 million (£76.8 million), earnings before interest, tax, depreciation and amortisation (EBITDA) of €17.6 million (£15.2 million) and earnings before interest and tax (EBIT) of €16.0 million (£13.8 million) on an adjusted pro-forma basis. On an audited basis EBIT was €14.1 million (£12.1 million). As at 31st December 2021, Vulcanic’s gross assets were €222.0 million (£186.8 million), including goodwill from previous Vulcanic acquisitions.