Gooch & Housego Share News (GHH)

(Sharecast News) - Gooch and Housego said it had bought UK-based medical manufacturer VITL for up to £22m as part of its efforts to expand the group's presence in the life sciences sector.G&H's acquisition of VITL will enable the group to "take a significant step" towards meeting its strategic objectives of doubling revenue flowing into its life science business and accelerating the company's move up the value chainThe AIM-listed firm said VITL's core group of electronic, software and mechanical engineers would also provide it with an "enhanced platform" on which it can expand its own systems capabilities.G&H will pay an initial £14m from existing resources, and issue £1.4m worth of new shares in the firm, with a deferred contingent cash consideration of up to £8m set to follow, based upon the performance of the business over the next two years."This acquisition provides a key step towards achieving our strategic aims of establishing 'critical mass' in our life sciences business and moving up the value chain, through a more systems-based product portfolio," said G&H chief executive Mark Webster."It means we are able to continue to diversify our business, allow G&H access to new high growth markets, as well as reducing, still further, dependency on the historically cyclical micro-electronic sector," he added.G&H shares were up 1.49% to 1,522.28p.