5th Mar 2014 10:33
LONDON (Alliance News) - Pressure Technologies PLC Wednesday agreed to acquire the entire share capital of Roota Engineering Ltd for a maximum consideration of GBP13.5 million.
The high pressure technology company said the deal is for an initial net cash consideration of GBP9.0 million with additional deferred payments of up to GBP4.5 million, based on the future financial performance of Roota.
Roota is a long established, privately owned business, specialising in the manufacture of bespoke engineered products for the oil and gas industry.
Pressure Technologies said that as part of the deal, Charles Stanley Securities has placed 1.9 million shares in the capital of the company at a price of 575 pence per share, allowing the company to rise GBP10.7 million which will fund the initial cash consideration of the deal.
After that, Charles Stanley placed a further 1.0 million shares at the same placing place to raise a further GBP6.0 million to be used to augment Pressure Technologies working capital facilities and fund certain capital expenditure requirements.
The company said the acquisition should enhance earnings, be complementary to other subsidiary businesses and deliver exceptional, longer term growth.
The news comes weeks after Pressure Technologies announced that its upcoming full-year results would be at least in line with expectations and it was continuing to seek out and evaluate further acquisition opportunities.
Pressure Technologies shares were trading up 6.5% to 628.60 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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