Fairey to pay 11.5m pounds for Infrared Engineering

FAIREY, the acquisitive engineering and electronics group, is to buy Infrared Engineering for a total of pounds 11.5m.

Infrared, based in Maldon, Essex, is a specialist manufacturer of infrared gauges used to measure characteristics such as moisture, fat and protein in the food, paper and tobacco industries and the thickness of plastic films and coatings.

The acquisition includes Infrared's marketing and technical support subsidiaries in Boston and Stuttgart.

Infrared has achieved compound annual growth of 12 per cent in sales over the past five years, and 80 per cent of its turnover is exported.

Fairey is paying for the acquisition with just under 2.7 million new Fairey ordinary shares, which go to the six vendors, who are directors of Infrared.

The five executive directors, who will remain with Infrared, are retaining 827,676 Fairey shares. The balance of the shares is being underwritten by Cazenove and will be placed with investment clients at 380p each.

Fairey reported pre-tax profits of pounds 14.5m last year on turnover of pounds 88.8m.