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Spirax Group

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Spirax Group plc
Company typePublic
LSE: SPX
FTSE 100 component
IndustryManufacturing
Founded1888
HeadquartersCheltenham, England, UK
Key people
  • Jamie Pike (chair­person) Edit this on Wikidata
  • Nimesh Patel (CEO) Edit this on Wikidata
RevenueIncrease £1,682.6 million (2023)[1]
Decrease £284.4 million (2023)[1]
Decrease £184.0 million (2023)[1]
Number of employees
10,000 (2025)[2]
Websitewww.spiraxgroup.com

Spirax Group plc, formerly Spirax-Sarco Engineering plc, is a British manufacturer of steam management systems and peristaltic pumps and associated fluid path technologies. It is headquartered in Cheltenham, England. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

History

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Charlton House, the company's head office in Cheltenham

The company was founded by Herman Sanders in 1888 and after a Mr Rehders joined the business, established as Sanders, Rehders & Co. ('Sarco') in London. Initially, it focused upon the importing of thermostatic steam traps from Germany.[3] During 1932, Sarco commenced the domestic manufacture of steam traps under the Spirax brand name. Between 1952 and 1968, the business was headed by Lionel Northcroft.[4]

In 1959, it was listed on the London Stock Exchange as Spirax-Sarco Engineering.[5] During 1960, Spirax-Sarco launched its first range of self-acting pressure controls. Three years later, it acquired Drayton Controls, a rival control valve and instrumentation business.[6]

During 1990, the company diversified into pump manufacturing via the purchase of Watson-Marlow.[7] Three years later, Spirax-Sarco also acquired the Jucker Industrial Division, an Italian controls business;[8] another firm, Bredel Hose Pumps, a manufacturer of high-pressure hose pumps, followed in 1996.[9] During 2001, M&M International, an Italian piston actuated and solenoid valve business was also purchased.[10] In September 2005, it acquired Mitech Actuators & Controls and Proportional Control Technology, a pair of South African businesses making process controls.[11] Later that same year, it also bought EMCO Flow Systems, a metering business.[12]

The company was negatively impacted by the onset of the Great Recession during the late 2000s, but was observing signs of recovery within two years.[13][14] In early 2009, Spirax Sarco acquired the Turkish distributor Intervalf in exchange for £2.8 million.[15][16] During the following year, it completed a new facility in Shanghai, China: the plant, which functions as Spirax's regional headquarters, combines a factory, warehouse, and offices.[17] That same year, the firm launched a £25 million initiative to modernise and consolidate its manufacturing and research and development operations around Cheltenham, Gloucestershire.[18]

In 2011, the Minister for UK Trade & Investment, Lord Green, opened Spirax Sarco's new facility in Saint Petersburg, Russia.[19] During May 2012, Deputy Prime Minister Nick Clegg visited Spirax Sarco’s manufacturing facility in Cheltenham.[20] In May 2012, there was a shareholder revolt following Spirax-Sarco's payment of £783,660 to a former executive director; the company compounded the situation by failing to inform the markets of the shareholder revolt as required by the Listing Rules.[21][22] During November 2012, the company bought Termodinámica, a distributor based in Santiago de Chile, for £3.3 million.[23] In February 2019, following regulatory clearance from US, French and German officials, Spirax-Sarco acquired Thermocoax, a multinational manufacturer of mineral insulated cable.[24][25]

By the late 2010s, Spirax-Sarco was deriving 77 per cent of its revenues and 70 per cent of its profits) from its work on industrial/commercial steam systems and electrical heating applications.[26] Its revenues and profits are typically more consistent and steady than many other manufacturers due to 50 per cent of its sales being to relatively non-cyclical sectors such as food, pharmaceuticals, biotechnology and healthcare. Furthermore, over 70 per cent of its annual revenues came from direct sales to customers, a strategy long practiced by the company since the 1950s.[26][4] A wider push towards Net Zero has also been a beneficial trend for the firm.[27] While the majority of its products have been suited for niche applications, these niches have typically faced relatively little competition. These factors have led to Spirax Sarco operating with relatively high profit margins.[26][28][29]

Throughout the COVID-19 pandemic of the early 2020s, the company experienced high demands for several of its products from pharmaceutical companies working on vaccines and medical equipment manufacturers producing breathing apparatus.[30][31] It was also during this period that the firm became a constituent of the FTSE 100 Index.[32] In summer 2021, Spirax Sarco opened a new office in Cheltenham, which was named after its former chairman Lionel Northcroft.[4]

During 2022, it acquired the thermal energy firm Durex International in exchange for $342 million;[33][34] furthermore, it also took a 15 per cent ownership stake valued at £3 million in the Norwegian thermal battery company Kyoto Group.[35] The company also ceased all business activities in Russia shortly after the start of the Russian invasion of Ukraine.[36] In February 2024, the company announced its intention to rebrand as Spirax Group, subject to shareholder approval;[37] accordingly, the firm changed its name from Spirax-Sarco Engineering to Spirax Group on 3 June 2024.[38]

Operations

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The company has three main operations: (i) Steam Specialties,[39] (ii) Electric Thermal Solutions[24] and (iii) Watson-Marlow Fluid Technology Solutions.[40]

References

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  1. ^ a b c "Preliminary Results 2023". Spirax-Sarco Engineering. Retrieved 7 March 2024.
  2. ^ "At a glance". Spirax. Retrieved 9 February 2025.
  3. ^ "Top 100 Gloucestershire Companies" (PDF). Westbusiness. July 2008.
  4. ^ a b c Hall, Matt (5 August 2021). "Spirax Sarco honours founder as it opens new Cheltenham office". punchline-gloucester.com.
  5. ^ "Stocks and prices". londonstockexchange.com. Retrieved 1 April 2015.
  6. ^ "Spirax-Sarco Engineering Fundamentals". Financial Betting. Retrieved 1 April 2015.
  7. ^ "Convergence Investment For Falmouth Pump Manufacturer". Business Cornwall. 26 August 2008. Retrieved 1 April 2015.
  8. ^ Cole, Robert (2 April 1993). "Spirax buys firms as profits rise". The Independent. Archived from the original on 24 May 2022. Retrieved 1 April 2015.
  9. ^ "A brief history of pumps". World Pumps. Retrieved 1 April 2015.
  10. ^ "Acquisition of M&M International by Spirax Sarco". Supply House Times. 10 January 2002. Archived from the original on 4 April 2015. Retrieved 1 April 2015.
  11. ^ "Local supplier prepares for big move". Mining Weekly. 11 August 2006. Retrieved 1 April 2015.
  12. ^ "Spirax-Sarco acquires EMCO Flow Systems". Plant Engineering. August 2005. Retrieved 1 April 2015.
  13. ^ "Spirax-Sarco posts lower profits on better sales, confident in future prospects". proactiveinvestors.com. 20 August 2009.
  14. ^ Lugg, Anthony (5 March 2010). "Spirax-Sarco sees signs of an upturn". investorschronicle.co.uk.
  15. ^ "Spirax Sarco buys Turkish operation". South West News. 8 April 2010. Retrieved 1 April 2015.
  16. ^ "Spirax Sarco Buys Turkish Distributor For Initial Consideration Of £2.8 Mln - Quick Facts". rttnews.com. 10 February 2009.
  17. ^ "How to Build a Factory and Distribution Centre in China". rightsite.asia. Retrieved 1 April 2015.
  18. ^ "Spirax Sarco overhauls manufacturing facilities". controlengeurope.com. 29 April 2010.
  19. ^ "UK Minister for Trade and Investment to attend St Petersburg International Economic Forum". fco.gov.uk. Retrieved 1 April 2015.
  20. ^ "Deputy Prime Minister praises Spirax Sarco's investment in UK manufacturing". Process and Control. 8 May 2012. Retrieved 1 April 2015.
  21. ^ Russell, Jonathan (24 May 2012). "Spirax fails to tell markets of investor rebellion". The Telegraph. Retrieved 1 April 2015.
  22. ^ Lea, Robert (26 May 2012). "Shareholders turn on chairman over multiple payouts". thetimes.com.
  23. ^ "Spirax Sarco Buys Business/Assets Of Chilean Distributor For £3.3 Mln". RTT News. 7 November 2012. Retrieved 1 April 2015.
  24. ^ a b Janes, Lisa-Marie (18 February 2019). "Spirax-Sarco to acquire Thermocoax in bid to boost US footprint". Shares Magazine. Retrieved 12 July 2022.
  25. ^ Godding, Nicky (15 May 2019). "Spirax Sarco completes purchase of French electrical thermal company". The Business Magazine.
  26. ^ a b c Oakley, Phil (3 October 2018). "Spirax-Sarco – an outstanding British company". investorschronicle.co.uk.
  27. ^ Stephenson, Josh (18 August 2023). "One B2B firm on why it stopped being 'humble' about sustainability to strengthen its brand". marketingweek.com.
  28. ^ Wood, David (11 August 2022). "Spirax Sarco reports 'strong' results in challenging times". punchline-gloucester.com.
  29. ^ Hughes, Fiona (6 January 2022). "How Spirax Sarco achieved business success during the pandemic". business-live.co.uk.
  30. ^ "Spirax Sarco produces components for life-saving breathing aid". buildingbetterhealthcare.com. 16 April 2020.
  31. ^ Lea, Robert (11 August 2023). "Vaccine equipment maker Spirax-Sarco suffers Covid hangover". thetimes.com.
  32. ^ Merrell, Andrew (2 January 2019). "Gloucestershire firm makes FTSE 100 list". punchline-gloucester.com.
  33. ^ "Spirax-Sarco buys US thermal energy specialist Durex International for US$342mln". proactiveinvestors.co.uk. 28 September 2022.
  34. ^ Kilgannon, Laurence (4 July 2022). "Spirax-Sarco in exclusive negotiations on £225.5m acquisition". insidermedia.com.
  35. ^ Wood, David (22 June 2023). "Spirax-Sarco to invest £3m for 15% stake in Kyoto Group". punchline-gloucester.com.
  36. ^ Rydings, Heather (10 March 2022). "TOP NEWS: Spirax-Sarco tops pre-pandemic sales in "excellent" 2021". morningstar.co.uk.
  37. ^ "New Brand for Spirax-Sarco". Punchline. Retrieved 22 February 2024.
  38. ^ "Spirax Group". Companies House. Retrieved 9 August 2024.
  39. ^ "Spirax-Sarco Engineering plc insider David J. Meredith Sells 4,911 Shares". Dakota Financial. 31 March 2015. Retrieved 7 April 2015.
  40. ^ "Watson-Marlow Fluid Technology Group". Copy book. Retrieved 7 April 2015.
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