3rd Feb 2015 14:15
LONDON (Alliance News) - Versarien PLC Tuesday said it has acquired aluminium product manufacturer Custom Systems Ltd for an initial cash consideration of GBP206,000, including an order book for aluminium extrusions and heatsinks that valued at about GBP400,000.
Custom Systems is a manufacturer of extruded aluminium products and heat sinks for the electronics and computing industries, as well as for large machinery and generators. The company was in administration prior to the deal.
"Together, the businesses are able to offer a wider range of thermal products. The acquisition also gives Versarien access to Custom System's prestigious customer base and will provide potential new routes to market for Versarien Technologies' recently developed porous copper air heat sink products," said the company.
As part of the deal, Versarien has also acquired over 90% of Custom System's current sales order book relating to aluminium extrusions and heatsinks, valued at approximately GBP400,000.
Following the deal, Custom System's operations and manufacturing facilities will be relocated to Versarien's headquarters in Gloucestershire, England.
For the year ended December 31, Custom System reported sales of GBP3.6 million, but operating losses of GBP187,000. Around 60% of its sales came from aluminium extrusions and heat sink products, said Versarien.
"This is an important acquisition which fits well with our strategy to provide customers with a range of standard and customer specific thermal products, including our patented porous metal foam technology," said Chief Executive Neill Ricketts.
Versarien shares were down 1.1% to 18.55 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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