LONDON (Alliance News) - Hayward Tyler Group PLC, which designs, manufactures and services motors and pumps, on Monday said it has conditionally acquired the trade and assets of UK engineering business Peter Brotherhood from Dresser-Rand Company Ltd, a business owned by German electronics giant Siemens, for USD15 million.
"This acquisition, which the directors expect will be significantly earnings enhancing during the first full financial period following completion of the acquisition, will also underpin the strength and depth of the wider Hayward Tyler group and set the stage for our next level of growth across the global energy sector whilst further cementing our position in the oil & gas and specialty chemical markets," Chief Executive Ewan Lloyd-Baker said in a statement.
"The board likewise remains fully committed to delivering on its progressive dividend policy in the current financial year," Lloyd-Baker said.
The deal will be paid in cash and funded through new debt facilities of GBP14 million from Royal Bank of Scotland.
Peter Brotherhood, which specialises in steam turbines, reciprocating gas compressors and combined heat and power units, is expected to boost Hayward Tyler's earnings in the current financial year, following which it is expected to be "significantly earnings enhancing".
Hayward Tyler said the deal increases its scale, number of customers and orders, therefore acting to diversify the group's operations.
New customers as a result of the deal include Keppel Shipyard, while Hayward Tyler expects its relationship with existing customer Rolls-Royce to be deepened.
Hayward Tyler intends to look at the sale and leaseback of the 11.5 acre Peterborough property in the near future.
Shares in Hayward were up 3.8% at 82.55 pence shortly after market open Monday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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