|Image courtesy of Elster Gas, Melrose Industries PLC|
The Elster Gas business of Melrose Industries PLC has signed a conditional agreement to acquire Eclipse Inc., Rockford, Ill., a manufacturer of gas combustion components and systems for industrial process heating and drying applications. For its fiscal year ended March 31, 2014, Eclipse recorded sales of $126 million.
The total consideration of $158 million is payable in cash on completion. The transaction is on a debt and cash free basis and will be funded within the existing debt facilities of the Melrose Group. Completion is conditional upon obtaining anti-trust clearance in the United States and is expected to occur during November 2014. Eclipse owners Lach and Doug Perks will resign at the time of transfer.
Eclipse’s expertise in low-temperature industrial gas combustion complements Elster’s expertise in high-temperature industrial gas combustion applications in Europe.
According to the Rockford Register Star, executives at Elster Gas and Melrose approached the Perks in June.