Pressure Tech Share News (PRES)

Oil and gas equipment supplier Pressure Technologies has diversified away from the deep water oil and gas market through the acquisition of the Hydratron group of companies.Hydratron is an international group that designs and manufactures a range of air operated high pressure hydraulic pumps, gas boosters, power packs, hydraulic control panels and test rigs.Pressure Technologies is initially paying £2.5m to acquire the company, which will be followed by two payments of £0.4m each. In the year to 30 April Hydratron had sales of £4m in the UK. The acquired group has net assets, after elimination of investment in subsidiaries, of around £1.1m. Pre-tax profit attributable to the net assets being acquired was £0.3 million.Pressure Technologies added that its trading in the year to 30 September 2010 was in line with market expectations. The deep water oil and gas market, however, remains depressed, as a result of the economic cycle and the after effects of the Gulf of Mexico oil spill, the company said. Anticipated orders for deep water projects at the group's subsidiary, Chesterfield Special Cylinders, are still pending and receipt of firm orders by December 2010 will be key to the group meeting current market expectations for the year ending 30 September 2011.