Siebe believes the main benefits of the merger will come from the integration of the two companies’ technologies and products.
BTR Siebe will be able to offer a wider range of ‘total solution’ packages acting as integrators of systems rather than just product suppliers.
‘It’s the kind of package our competitors have and are trying to leverage against us,’ said chief executive officer Allen Yurko, formerly chief executive of Siebe.
He said the big players in the intelligent automation systems market had made virtually all the consolidation moves possible. ‘Now it is a question of getting the product to the market,’ he said. ‘That means getting the right kind of sales channel. BTR gives us that.’
Yurko denied that Siebe had made the move with the aim of getting BTR’s network to sell Siebe’s high technology. He pointed out that the companies had been making similar acquisitions, such as Limitorque (bought by BTR) and Eurotherm (a Siebe buy).
Ian Strachan, formerly chief executive of BTR and now deputy chairman of the new organisation, said the prospects for cross-selling were strong thoughout the group, with the exception of the automotive division.
Poor prospects in this market helped depress BTR’s share price this year, despite Strachan’s attempts to drastically refocus the group over the past three. But he has refused to say whether this part of the business will be lined up for disposal.