Spectris Buys Omega Engineering for $475 Million
Omega Engineering offers products in four categories: temperature; pressure, strain and force; flow, level and pH; and data acquisition and process automation. Among the reasons for the acquisition cited by Spectris were the addition of scale to its Industrial Controls unit; the business’s barriers to entry, including in-house manufacturing for high margin products; and long-term customer relationships. The purchase also provides cross-channel and supply chain opportunities for other Spectris businesses. The Financial Times reported that, following the acquisition, Industrial Controls will account for 20% of Spectris revenues.
Egham, UK 8/15/11—Spectris has agreed to acquire Omega Engineering for $475 million on a debt- and cash-free basis. Omega Engineering provides a broad range of process measurement and control instrumentation to industrial and academic markets. Spectris stated that the company has a differentiated customer service model, which emphasizes quality, availability, customization and delivery speed. “We are delighted to have reached an agreement to acquire the Omega Engineering business, which will bring a significant strategic growth platform to our Industrial Controls segment,” stated Spectris Chief Executive John O’Higgins. The acquisition is expected to enhance adjusted EPS in the first full financial year. Omega Engineering had 2010 sales of $168 million and an adjusted operating profit, before interest and tax, of $39.6 million. Headquartered in Stamford, Connecticut, the company has 700 employees. The acquisition is expected to close in the fourth quarter.
