Spirax completes sale of M&M to Rotork

Industrial engineering group Spirax-Sarco has sold M&M International to sector peer Rotork for €9.7m (£6.8m).

The FTSE 250 group acquired M&M, which manufactures piston actuated valves and solenoid valves in Bergamo, Italy, in 2000 and reported operating profit of €1.5m and sales of €8.9m last year.

Spirax said on Tuesday that the divestment follows a strategic review that concluded M&M's” lower strategic fit with the group limited our ability to improve their sales growth rates and profitability.”

Rotork’s chief executive Petr France hailed the acquisition as an “excellent addition” to the company’s portfolio.

"M&M is an excellent addition to our Instruments division which will complement Rotork Midland and provide a focal point for solenoid valve and piston actuated valve manufacturing within the group,” he said.

“This acquisition supports our strategy of broadening our product portfolio and expanding our addressable markets.”

As of 0836 BST on Tuesday, Spirax shares were down 0.42% to 3,358.00p, while Rotork shares were up 4.49% to 225.70p.