NewswireToday - /newswire/ -
Egham, Surrey, United Kingdom, 2014/12/11 - Spectris plc (“Spectris”), the productivity-enhancing instrumentation and controls company, announces that it has completed the acquisition of the privately-held Canadian group Engineering Seismology Group (“ESG”) - Spectris.com. LSE: SXS
The purchase consideration of C$64 million (approximately £36 million), on a debt and cash-free basis, will be met from existing cash and bank facilities and is subject to routine balance sheet adjustments. In addition, a contingent consideration may become payable to the sellers based on the achievement of certain sales growth targets for the three-year period beginning 1 January 2015.
ESG is a leading provider of microseismic monitoring equipment and analysis solutions, primarily to the oil and gas and mining sectors, as well as to other industries. ESG has been growing rapidly and has significant opportunities to accelerate its growth because its technology enables oil and gas and mining companies to enhance their productivity and improve their return on investment. ESG’s technology, products and solutions optimise the recovery rates of both existing and new oil and gas reservoirs and support the development of cost-efficient extraction processes in a safe manner that minimises the impact on the local environment. ESG will become a separate operating company within Spectris’ Test and Measurement segment. More information on ESG can be found at esgsolutions.com
Eoghan O’Lionaird, Business Group Director, said: “ESG is a good strategic addition to Spectris’ Test and Measurement segment as it is a leader in a niche high-growth, productivity-enhancing technology. We believe there is a significant opportunity for ESG to strengthen its market position, expand internationally and accelerate its growth, both organically and via further acquisitions. Supported by Spectris’ global reach and expertise ESG will also benefit from sharing capabilities and technology with other Spectris operating companies. This acquisition demonstrates Spectris’ ability to expand into new technology platforms where there are high barriers to entry and which provide additional sources of growth by enhancing productivity for customers. The acquisition also fits the Spectris financial profile of attractive margins and strong cash generation.”
A conference call for analysts and investors will be held at 08:00 (UK time) today to discuss this statement. To access the call please use the following numbers:
Toll number +44 20 3139 4830
Toll-free number 0808 237 0030
Participant PIN 69490022#
Replay number +44 20 3426 2807
Replay toll-free number 0808 237 0026
Replay PIN 652764#
Spectris will publish a trading update for the year ending 31 December 2014 on 16 January 2015, ahead of releasing full year results on 27 February 2015.
Spectris plc: Matt Jones, Head of Corporate Affairs
P: +44(0)17 8447 0470
FTI Consulting: Richard Mountain / Susanne Yule
P: +44(0)20 3727 1340
Spectris plc (spectris.com) is a leading supplier of productivity-enhancing instrumentation and controls. The Company’s products and technologies help customers to improve product quality and performance, improve core manufacturing processes, reduce downtime and wastage and reduce time to market. Its global customer base spans a diverse range of end user markets. Spectris operates across four business segments which reflect the applications and industries it serves: Materials Analysis, Test and Measurement, In-line Instrumentation and Industrial Controls. Headquartered in Egham, Surrey, United Kingdom, the Company employs over 8,000 people with offices in more than 30 countries.