SOURCE: Thermon Group Holdings, Inc.

Thermon Group Holdings, Inc.

December 22, 2014 16:01 ET

Thermon Announces Acquisition of Unitemp

SAN MARCOS, TX--(Marketwired - Dec 22, 2014) - Thermon Group Holdings, Inc. (NYSE: THR) ("Thermon") today announced that one of its wholly-owned subsidiaries has entered into an agreement (the "Transaction") to acquire certain assets and assume certain liabilities of Unitemp cc ("Unitemp"). Thermon expects the Transaction to close in spring 2015.

Unitemp is an ISO 9001:2008-accredited designer and supplier of heating, sensing, portable instruments, monitoring and control solutions serving the Sub-Saharan Africa market. Unitemp is headquartered in Cape Town, South Africa, with a branch location in Johannesburg, South Africa. Unitemp generated annual revenue of 90 million South African Rand (approximately $8 million US Dollars at the current exchange rate) in its most recently completed fiscal year. The current Unitemp management team will continue to operate the business following the closing of the Transaction.

"The acquisition of Unitemp represents an attractive opportunity for us to extend our global footprint to include the African continent, enhance our ability to serve our global customers and expand our presence in the Sub-Saharan Africa market. The acquisition is consistent with our strategy of pursuing organic and inorganic growth opportunities within our core business. Unitemp has been a valued channel partner of Thermon for many years and we look forward to welcoming the employees of Unitemp into the Thermon family," said Rodney Bingham, President and Chief Executive Officer of Thermon.

"Unitemp has successfully and consistently grown over the last 20 years. We have reached a point in our development where an outside partner will be able to help accelerate future growth, particularly as it relates to the range of project opportunities that lie ahead. We are excited to be partnering with Thermon, and we expect to strengthen our product ranges, expand our services and become a stronger partner to our valued customers," said Hans Hitzeroth, Chief Executive Officer and Member of Unitemp.

About Thermon

Through its global network, Thermon provides highly engineered thermal solutions, known as heat tracing, for process industries, including energy, chemical processing and power generation. Thermon's products provide an external heat source to pipes, vessels and instruments for the purposes of freeze protection, temperature maintenance, environmental monitoring and surface snow and ice melting. Thermon is headquartered in San Marcos, Texas. For more information, please visit www.thermon.com.

Forward-Looking Statements

This release may include forward-looking statements within the meaning of the U.S. federal securities laws in addition to historical information. These forward-looking statements include, without limitation, statements regarding our industry, business strategy, plans, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. When used, the words "anticipate," "assume," "believe," "budget," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "will," "future" and similar terms and phrases are intended to identify forward-looking statements in this release. Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our financial condition, results of operations and cash flows.

Actual events, results and outcomes may differ materially from our expectations due to a variety of factors. Although it is not possible to identify all of these factors, they include, among others, (i) general economic conditions and cyclicality in the markets we serve; (ii) future growth of energy and chemical processing capital investments; (iii) our ability to deliver existing orders within our backlog; (iv) our ability to bid and win new contracts; (v) competition from various other sources providing similar heat tracing products and services, or alternative technologies, to customers; (vi) changes in relevant currency exchange rates; (vii) potential liability related to our products as well as the delivery of products and services; (viii) our ability to comply with the complex and dynamic system of laws and regulations applicable to international operations; (ix) a material disruption at any of our manufacturing facilities; (x) our dependence on subcontractors and suppliers; (xi) our ability to obtain standby letters of credit, bank guarantees or performance bonds required to bid on or secure certain customer contracts; (xii) our ability to attract and retain qualified management and employees, particularly in our overseas markets; (xiii) our ability to continue to generate sufficient cash flow to satisfy our liquidity needs; (xiv) the extent to which federal, state, local and foreign governmental regulation of energy, chemical processing and power generation products and services limits or prohibits the operation of our business; and (xv) other factors discussed in more detail under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2014, filed with the Securities and Exchange Commission on May 30, 2014. Any one of these factors or a combination of these factors could materially affect our financial condition, results of operations and cash flows and could influence whether any forward-looking statements contained in this release ultimately prove to be accurate.

Our forward-looking statements are not guarantees of future performance, and actual results and future performance may differ materially from those suggested in any forward-looking statements. We do not intend to update these statements unless we are required to do so under applicable securities laws

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