Pressure Tech Share News (PRES)

(ShareCast News) - Engineering firm Pressure Technologies has bought rival Martract for £4.3m in order to strengthen its ability to supply bespoke solutions to clients and improve its supply chain.The company said that the acquisition, which is expected to me immediately earnings enhancing, is a "strong strategic fit" in its precision engineering division and joins the Roota Engineering, Al-Met and Quadscot businesses.It will be able to expand its relationship with Martact's oil and gas and international clients as the acquisition will be vertically integrated within Roota Engineering offering manufactured and ground product solutions. It will shorten the supply chain and reduce product lead-times in the precision engineering.Martract also has customers across other sectors including nuclear and industrial, which the company hopes to expand into.Of the £4.3m, £3.7m was paid in cash and the remaining £600,000 will be paid dependent on the performance of Martract's earnings before interest, tax, depreciation, and amortisation (EBITDA).John Hayward, chief executive of Pressure Technologies, said: "This is an exciting acquisition for the group, which strengthens our existing market position and gives significant opportunity to penetrate new markets. Martract's reputation for technical ability and quality sits well with our group capabilities."For the year ended 31 August, Martract had unaudited revenue of £1.2m, of which 40% came from the oil and gas market and 60% from other sectors, and adjusted proforma EBITDA of £450,000.Shares in Pressure Technologies were up 6.55% to 146.50p at 1016 GMT.