1st Oct 2014 07:50
LONDON (Alliance News) - Pressure Technologies PLC Wednesday said it has agreed a deal to buy Quadscot Holdings Ltd and said it has agreed a new GBP15 million financing facility.
The engineering company said it will pay up to GBP10.3 million to acquire the entire issued share capital of Quadscot, a precision engineering group. The acquisition consideration includes a GBP7.3 million initial cash payment with additional deferred payments, split over two years, of up to GBP3.0 million based on Quadscot's future financial performance.
Pressure said Quadscot will become part of its Engineered Products division and said it expects the acquisition to be earnings accretive immediately.
"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," said Pressure Chairman Alan Wilson.
In addition, the company said it has agreed a new GBP15 million, multi-currency lending facility with Bank of Scotland, part of Lloyds Banking Group PLC. The deal is available to the company until 2018 and includes an accordion feature allowing the revolving credit facility to expand by another GBP10 million.
Pressure shares were up 3.4% to 680.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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