Spirax-Sarco Engineering plc, announced it has acquired the assets of the process control valve manufacturer, Hiter Indústria e Comércio de Controles Termo-Hidráulicos Ltda (Hiter), based in Sorocaba, Brazil. Hiter was a subsidiary of Pentair plc, which is listed on the New York Stock Exchange.
Hiter is highly synergistic with Spirax Sarco’s successful Brazilian steam and process fluid applications business. The Hiter brand has a well established reputation in Brazil with a large installed base and had net sales of over £7 million in 2015. Following the acquisition, Spirax becomes the only significant manufacturer of both control and safety valves in Brazil.
Hiter has undergone significant change in recent years as part of Pentair’s Valves & Controls segment, resulting in a December 2015 announcement to close the company effective March 2016. The assets have been acquired by a new Spirax subsidiary, Hiter Controls Engenharia Ltda, which will commence trading in the fourth quarter of 2016. It is anticipated that the start-up and pre-operating losses incurred in 2016 will reach £1.2 million on negligible sales. After re-establishing Hiter’s market position during 2017, this business is forecast to make a positive contribution to Group earnings from 2018.
The total purchase consideration of £3.9 million was paid in cash from existing Group resources.