Thermon Reveals Acquisition Of Sumac

(RTTNews) - Thermon Group Holdings, Inc. (THR) said Tuesday that its indirect subsidiary, Thermon Canada, Inc., has acquired a controlling interest in Thermon Power Solutions, Inc., a newly created entity, effective April 1.

Also effective April 1, Thermon Power Solutions acquired the business previously conducted by Sumac Fabrication Co. Ltd.

Sumac is a designer and fabricator of temporary power distribution equipment that is used in hazardous-location and general purpose areas within industrial facilities. For its fiscal year ended September 30, 2014, Sumac generated revenue of about C$17.6 million. Sumac's management team will continue to operate the business following the closing of the deals.

The cash consideration paid by Thermon Canada for a 75% equity interest in Thermon Power Solutions was C$14.25 million in cash at closing, subject to customary working capital adjustments, and a potential contingent cash payment of up to C$7.5 million based on the EBITDA performance of the business for the 12-month period following the closing of the deals, subject to certain deal related adjustments.

An entity affiliated with Dwayne Sampson, President of Sumac, will retain a 25% equity interest in Thermon Power Solutions, which Thermon Canada will have the right to acquire beginning on the third and fourth anniversaries of the closing of the deals.