Spirax-Sarco in Cheltenham sells Germany-based unit for almost €60m

Spirax Sarco

Multi-national company Spirax-Sarco Engineering plc, in Gloucestershire, has sold its subsidiary HygroMatik GmbH to Carel Industries SpA for €59m.

The Cheltenham firm said the move meant a better ‘strategic fit’ for the Hamburg-based humidification equipment manufacturer.

HygroMatik has a strong position in the public buildings, spa and wellness sectors. It joined Spirax-Sarco in 1988 but has always operated separately from the steam specialties division.

The steam and electrical thermal energy solutions provider said low level of integration limited HygroMatik’s ability to improve sales growth and maintain profitability.

In 2017, HygroMatik’s sales were £13m and operating profit was £3.9m.

Spirax-Sarco Chief Executive Nicholas Anderson said: “HygroMatik is a high-quality company and has been an excellent member of the group for the last 30 years.

“I am delighted that they will now join Carel, where the better strategic fit should enable even stronger performance.”