(Alliance News) - Engineering company 600 Group PLC on Monday said it has bought US-based laser process machines and systems manufacturer Control Micro Systems Inc for a total consideration of USD10 million in cash and stock.
"The acquisition of CMS significantly enhances the group's laser business and marks a further step forward in our strategy of building a global business across increasingly diversified niche markets worldwide," said 600 Group Chair Paul Dupee.
The company has bought Control Micro Systems from founder and owner Tim Miller. The deal consideration comprises a cash consideration of USD9 million, plus USD1 million shares in 600 Group
The acquisition is being funded from 600 Group's cash reserves and existing facilities plus a new USD3.25 million 5-year term facility from Bank of America. The share component consists of the issue of 4.5 million new ordinary shares
Control Micro Systems recorded revenue of USD11.6 million and pretax profit of USD1.2 million for 2018.
Shares in 600 Group were trading 3.3% higher at 18.60 pence each on Monday morning.