Melrose to acquire US components maker Eclipse

Melrose Industries has agreed to pay $158m to acquire US firm Eclipse, which makes gas combustion components and systems for industrial heating and drying applications.

The debt and cash free purchase will be funded from the FTSE 100 company's existing debt facilities.

Melrose said the company's skills in low-temperature industrial gas combustion would complement its own capabilities in high-temperature industrial gas combustion applications.

For the year ended 31 March, Eclipse generated sales of $126m.

The deal, which still requires anti-trust clearance from US authorities, is expected to occur during November 2014.

Melrose chief executive Simon Peckham said: "We are delighted to welcome Eclipse to the Melrose Group and are excited about the opportunity to merge Eclipse with Elster Gas.

"Together, the two businesses will be able to provide customers with a more comprehensive offering, comprising a complete range of gas combustion solutions. We are confident that Eclipse will have a very successful future as part of Melrose."