Cheltenham-based Spirax-Sarco Engineering plc has agreed a £319 million deal to acquire Chromalox, a US thermal-technology company that is currently owned by Irving Place Capital and has five manufacturing facilities (three in North America, one in France and one in China).

The company provides electrical products and systems for industrial process heating and temperature management. In the year to 30 September 2016, Chromalox ecorded revenues of £155 million and earnings of £33 million.

Spirax-Sarco said it planned to invest in the business to grow its presence outside its core markets in the USA and support research and development.

Nicholas Anderson, chief executive of Spirax-Sarco, said: “We are delighted to bring Chromalox, its management and employees into the Spirax Sarco family.

“We have been following Chromalox for a number of years, and we believe that the acquisition represents an excellent opportunity to expand our addressable markets through the purchase of a clearly related business, which solves customers’ specialist heating requirements and shares our strong direct-sales business model.”

The deal will be funded by new debt facilities from Spirax-Sarco’s existing banks and is subject to regulatory approval in the USA (www.spiraxsarcoengineering.com).