Pressure Technologies plc Acquires Quadscot Holdings Limited
Pressure Technologies announces that it has acquired the entire issued share capital of Quadscot Holdings Limited ("Quadscot") (the "Acquisition"), a provider of high quality computer controlled and conventional precision engineering and machining services primarily to the oil, gas and petrochemical industries.
- The Acquisition is complementary to the Group's existing subsidiaries Al-Met Limited ("Al-Met") and Roota Engineering Limited ("Roota") and Quadscot will become part of the Engineered Products division
- Quadscot is a profitable and cash generative business that also benefits from good near term order book visibility
- The Board expects that the Acquisition will be immediately earnings enhancing
- Quadscot has significant opportunities to expand and extend its customer base following a recent large scale expansion of its manufacturing facilities
- The Acquisition is further evidence of the Board delivering on the Group's stated strategy to expand both organically and by acquisition and adhering to its strict acquisition criteria
The maximum total consideration for the Acquisition is £10.3 million (plus cash balances), comprising an initial cash consideration of £7.3 million (plus cash balances) ("Initial Consideration") with additional deferred payments, split over two years, of up to a maximum of £3.0 million, based on the future financial performance of Quadscot ("Additional Consideration"). The Initial Consideration will be met from the Group's new bank facilities and existing cash resources.
Alan Wilson, Chairman of Pressure Technologies, said: "The acquisition of Quadscot is further evidence of the Group's ability to identify well run, profitable businesses that will benefit from being part of Pressure Technologies, whilst also making a significant contribution to the future performance of the Group.
Quadscot has an excellent reputation in its market and we are delighted to welcome all of the employees to the Group."