Luxfer to buy Truetech, Innotech Products for USD64m.
M2 EQUITYBITES-June 13, 2014-Luxfer to buy Truetech, Innotech Products for USD64m
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14 June 2014 - UK-based materials technology company Luxfer Holdings Plc (NYSE:LXFR), or Luxfer Group, said today that it had agreed to buy US sector players Truetech Inc and Innotech Products Ltd for a combined price of USD64m (EUR47.2m).
Truetech and Innotech, which operate under similar ownership, produce magnesium-based heating pads for self-heating meals, self-heating meals, beverages and soups, as well as chemical agent detection and decontamination kits and seawater desalinisation kits.
The buyer's CEO, Brian Purves, commented that the purchase was aligned with its target market of protection technologies. He added that using its expertise in the design of magnesium alloys, his firm would develop next-generation flameless heaters. Joel Hockett, CEO of Truetech and director of Innotech, added that it was time for the two business to join a global enterprise.
The deal is subject to regulatory approvals, which are seen to be received within two months. Upon completion, Truetech and Innotech Products will be folded into Luxfer's new unit Luxfer Magtech Inc (LMI), which will be part of its Elektron division.
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