UK based instrumentation and controls group, Spectris plc, has signed an agreement to acquire the Omega Engineering business for $475 million (about £290 million), on a debt and cash-free basis.
Omega (Stamford, Connecticut,) is a privately-held business which provides a range of process measurement and control instrumentation to customers in industrial and academic markets, selling directly to end users in these sectors via catalogue, telephone and internet.
The company has five manufacturing facilities and two distribution/sales facilities and employs around 700 people. Founded in 1962, Omega supplies a range of process measurement and control products to measure temperature, pressure, flow, level, strain, humidity, pH and conductivity.
The company had sales of $168 million (about £103 million) in 2010 and adjusted operating profit before interest and tax of $39.6 million (about £24 million) and was cash generative. The value of gross assets acquired as at 31 December 2010 was $84.4 million (about £52 million). The acquisition is expected to be completed in the fourth quarter on satisfaction of customary closing conditions including US and German antitrust clearances.
Recently Spectris (Egham, UK), completed the acquisition of IRM Group SA a manufacturer of high technology measuring systems for the metals industry. IRM is based near Liège, Belgium, and employs around 60 people. The net purchase consideration is €7.5 million (approximately £6.6 million), on a debt and cash-free basis.
Spectris plc (“Spectris”, “the company” or “the group”), the productivity-enhancing instrumentation and controls company, today issues an update on trading for the six months ended 30 June 2011.
An interim management statement from Spectris in May reported strong trading conditions for the first four months of 2011, and these continued for the remainder of the half year, with healthy demand in all regions and end markets. It expects sales for the first six months of 2011, on a constant currency like-for-like basis, to be 21 percent higher than the comparable period last year. On a reported basis, sales are expected to increase by approximately 25 percent, including a contribution from acquisitions (+5 percent) and the effects of currency (-1 percent).
Adjusted operating profit is expected to be in the region of £80 million (2010:£49.9 million), giving an adjusted operating margin of approximately 16 percent. For 2010 financial year group sales were £901.9 million with an operating profit of £127.9 million.