18/11/2011Rotork is pleased to announce the acquisition of Fairchild Industrial Products Company, a manufacturer of high-precision pneumatic controls and power transmission products based in North Carolina, USA.
The company was purchased from FIPC Acquisition, LLC a Delaware limited liability company controlled by Hampshire Equity Partners III, L.P. for a net consideration of $75.8m payable in cash and financed from existing reserves. $7.7m of the total sum will be deferred and held in escrow for two years.
Fairchild manufacture a full range of market leading regulators, boosters, relays and transducers. The products are used in a wide variety of applications that require precision control of pneumatic devices and motion control equipment. As well as Oil and Gas applications the company also benefits from orders in the pharmaceutical and biomedical equipment, tyre manufacturing machinery, robotics, food processing and chemical manufacturing applications. The company has offices in China and India with local presence in Mexico, Russia and Brazil. North America remains the largest market with 57% of the revenue with Europe accounting for 16% and North Asia12%.
The acquisition of Fairchild is in line with Rotork's strategy of strengthening its presence in the global flow control market, as part of which the Group also announces the creation of a new division, Rotork Instruments. Rotork Instruments will focus on developing further opportunities in the flow control market; in particular, products associated with flow and pressure control and diagnostic and information gathering technology. Fairchild will be the first company within the Rotork Instruments division.
Commenting on the acquisition, Rotork Group Chief Executive, Peter France, said: "The acquisition of Fairchild will strengthen our presence in the global flow control market and, in forming the basis of new division, Rotork Instruments, will broaden the scope of the Group's activities."