Spirax in talks to buy Thermocoax for €158m

Spirax-Sarco Engineering said it was in talks to buy Thermocoax Developpement from Chequers Capital, TCR Capital and other minority shareholders for a €158m (£139m) on a cash-free and debt-free basis.

Thermocoax is based in France and has factories in Normandy, the USA and Germany.

“We anticipate that Thermocoax will become part of our Chromalox business and will significantly enhance our electrical process heating business, especially in Europe,” Spirax said in a statement on Monday.

“The US market holds significant potential for Thermocoax. It has grown substantially there in the last five years but is constrained by lack of critical mass and local credentials. Chromalox has scale, contacts and reputation in the U.S. that can support faster penetration of the market as well as enhancing its offering to its own customers.”

“In Europe, Thermocoax is expected to strengthen our market position, capabilities and brand recognition in a broad range of attractive industries and applications beyond those where Chromalox currently operates.”