Acquisition of Drache Umwelttechnik GmbH

Porvair, the specialist filtration, laboratory and environmental technology group, today announces that it has agreed to acquire 100% of the share capital of Drache Umwelttechnik GmbH ("Drache" or the "Acquisition").

Founded in 1984 and headquartered in Diez, Germany, Drache is active in the development, manufacture, and distribution of filters, consumables, and equipment for the molten metal industry, and is a leading supplier to the aluminium filtration market. Under its existing management team, Drache will join the Group's Metal Melt Quality division, bringing complementary products and engineering experience, while expanding the division's global reach with a new European base alongside its American and Asian operations.

The Metal Melt Quality division operates in attractive end markets, including growing global demand for aluminium filtration. This global growth trend is underpinned by the infinite recyclability of aluminium; its strength-to-weight benefits for use in transportation; the replacement of plastic and steel with aluminium; and the energy efficiency of cast house recycling compared with primary production. Drache will further strengthen the Group's aluminium offering, and follows the previously announced £5.5 million investment to update and expand the cast house capabilities in Hendersonville, US, a project which is progressing to plan and remains on track to complete in H1 2026.

The cash consideration for Drache is €20.5 million, on a cash free, debt free basis and will be funded from the Group's existing cash reserves and banking facilities. The consideration includes approximately €4 million for two freehold operational sites in Diez, Germany. For the year ended December 2025, Drache's unaudited revenues are expected to be approximately €20 million. The Acquisition is expected to be earnings enhancing in the year ending 30 November 2026 (after integration related costs). Drache employs approximately 100 employees across Germany, the US and the UAE.

The Acquisition is expected to complete later today, following which the Group will have a modest net cash position.

As previously communicated, Porvair will announce its results for the year ended 30 November 2025 on Monday 9 February 2026.

Commenting on the Acquisition, Chief Executive Hooman Caman Javvi, said:

"I am delighted to welcome Drache and its employees to the Group. We have known the business for many years, and it is a strong strategic fit with our Metal Melt Quality division, bringing an extended geographical reach to the division's existing businesses in the US and China; an enhanced product portfolio in the growing global aluminium market; and additional manufacturing flexibility. We look forward to realising the opportunities from an expanded global offering and supporting Drache with its growth and success.

This Acquisition is consistent with our strategy to acquire complementary businesses in attractive end-markets to underpin the Group's long-term growth potential, and we look forward to updating the market further at the full year results."