Acquisition and Trading Update

RNS Number : 2950G

Porvair PLC

05 June 2013

 

For immediate release                                                                                      5 June 2013

Porvair plc ("Porvair" or "The Group")

Acquisition and Trading Update

Porvair, the specialist filtration and environmental technologies group, today announces the acquisition of the business of Eisenmann Metallurgical LLC and issues a trading update ahead of the publication of its interim results for the six months ended 31 May 2013 on 24 June 2013.

The Group's Microfiltration division has acquired the goodwill, business and trading assets of Eisenmann Metallurgical LLC, trading as Chand Eisenmann Metallurgical ("CEM"), for a total consideration of US$5.5 million in cash and loans.  CEM designs and manufactures specialist filters from a facility in Caribou, Maine.  There is a good commercial fit between CEM and Porvair's existing product portfolio. With clear cross-selling opportunities, the combined business is well positioned to accelerate its rate of growth in the US. The transaction is expected to be immediately earnings accretive.

The Group has started 2013 well and expects to report interim profits well ahead of 2012. Several major contracts were announced earlier in the year and will support Group performance over the next few years. All are on schedule and have begun to contribute to results. Group revenue is expected to be around 7% ahead of the first six months of 2012 at constant currency rates.  Order books are strong in Microfiltration and market share gains continue to be made in Metals Filtration.  

An analyst briefing will be held at 9.30 a.m. at Buchanan, 107 Cheapside, London, EC2V 6DN on the day of the interim results, Monday 24 June 2013.

Commenting on the acquisition and trading, Ben Stocks, Chief Executive, said:

"CEM is a highly complementary bolt-on acquisition which broadens our product range, geographic spread and materials expertise. Its staff, based in Caribou, Maine, are skilled and highly experienced and are warmly welcomed to the Group. There are many cross-selling opportunities apparent in this transaction and we plan to invest in the Caribou facility over the next 12 months to accommodate the expected growth.

Trading in the first half of 2013 has been satisfactory, and the prospects for the second half; supported by our order books, recent large engineering contracts, and the CEM acquisition; are good."

For more information, contact:

Porvair plc
Ben Stocks, Chief Executive	01553 765 500
Chris Tyler, Group Finance Director	01553 765 500
Buchanan	0207 466 5000
Charles Ryland / Helen Greenwood / Clare Akhurst www.buchanan.uk.com

Notes to Editors

Porvair is a group of specialist filtration and environmental technology businesses.  Its businesses design and manufacture a range of bespoke consumable filtration products that are used in a range of niche filtration markets.  Its principal markets are aviation, energy and industrial process, environmental laboratories and non-ferrous metals.

 

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