Spirax-Sarco Engineering plc (LSE: SPX) (“Spirax”) has acquired Chromalox, Inc. from Irving Place Capital Partners. Chromalox is a leader in electric based process heating solutions for a diverse range of industrial markets and applications. Chromalox offers the most comprehensive suite of heating control products on the market and is recognized as a premier brand and technology leader. Chromalox goes to market globally across three business segments. The Heat Trace segment delivers temperature management solutions for piping systems, valves, and tanks. The Industrial Heaters and Systems segment delivers process heating solutions for industrial processes, and the Component Technologies segment delivers component heating solutions for industrial equipment manufacturers. Approximately 70% of sales are addressed via its direct salesforce and 30% are through distributors. It has five manufacturing facilities across the USA, Mexico, France and China. Chromalox was a portfolio company of New York based private equity group Irving Place Capital Partners.
Spirax is the global leader in the supply of engineered solutions for the design, maintenance and operation of efficient industrial and commercial steam systems. Spirax is also a leader in flow control for other industrial fluids and in peristaltic pumps through its Watson Marlow division.
Chromalox is closely related and highly complementary to the Spirax steam business. Both companies deliver thermal energy management solutions to customers through a primarily direct sales model with the decision between using steam or electricity as a heating medium being driven by differing needs of the application or customer circumstances. As a result, Chromalox will nearly double Spirax’s total addressable market. Chromalox will become a new and separate business unit under the Spirax steam business group.
Nicholas Anderson, CEO of Spirax, commented, “We are delighted to bring Chromalox, its management and employees into the Spirax Sarco family. We have been following Chromalox for a number of years and believe that the acquisition represents an excellent opportunity to expand our addressable markets through the purchase of a clearly related business, which solves customers’ specialist heating requirements, and that shares our strong direct sales business model. As we invest in strengthening the company’s direct sales and leverage Spirax Sarco’s global footprint and expertise, Chromalox will enhance our growth and provide sustainable value creation for customers and shareholders.”