Luxfer has entered into an agreement to acquire the assets and business of Truetech, Inc. and of Innotech Products, Ltd for an estimated total of $64m.
The proposed deal represents a multiple of approximately eight times the expected EBITDA for 2014. Closing is subject to required regulatory approvals, including those covering key suppliers to the US military. These approvals are expected to take up to two months. Other Luxfer subsidiaries are already approved suppliers to the US military for other products.
Truetech and Innotech produce magnesium-based heating pads for self-heating meals used by the US military and emergency relief agencies; an extensive line of self-heating meals, beverages and soups used by military and civilian end-users; chemical agent detection and decontamination kits; and seawater desalinisation kits.
Luxfer will combine the businesses of Truetech and Innotech within Luxfer Magtech Inc. (LMI), a new wholly owned subsidiary of Luxfer Group. LMI will operate as part of Luxfer Group’s Elektron Division.
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