Spirax-Sarco in Cheltenham sells Germany-based unit for almost €60m

Published by

Nicky Godding

Multi-national company Spirax-Sarco Engineering plc, in Gloucestershire, has sold its subsidiary HygroMatik GmbH to Carel Industries SpA for €59m.

The Cheltenham firm said the move meant a better 'strategic fit' for the Hamburg-based humidification equipment manufacturer.

HygroMatik has a strong position in the public buildings, spa and wellness sectors. It joined Spirax-Sarco in 1988 but has always operated separately from the steam specialties division.

The steam and electrical thermal energy solutions provider said low level of integration limited HygroMatik's ability to improve sales growth and maintain profitability.

In 2017, HygroMatik's sales were £13m and operating profit was £3.9m.

Spirax-Sarco Chief Executive Nicholas Anderson said: "HygroMatik is a high-quality company and has been an excellent member of the group for the last 30 years.

"I am delighted that they will now join Carel, where the better strategic fit should enable even stronger performance.”

Nicky Godding

Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe. After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts. She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.