LONDON (Alliance News) - High-pressure engineering company Pressure Technologies PLC on Thursday said it has agreed to buy UK-based Martract Ltd for up to GBP4.3 million in cash.
Martract specialises primarily in the grinding and lapping of ball and seat assemblies and gate valves and will be integrated into Pressure Tech's Engineering arm.
Pressure Tech said the deal will boost its relationships with existing suppliers to its engineering division and noted Martract generates around 60% of its revenue from outside the oil and gas market. Oil and gas end-market softness has hampered Pressure Tech's sales in recent years.
Pressure Tech will pay up to GBP4.3 million to acquire Martract, comprising a GBP3.7 million upfront payment and additional GBP600,000 to be paid if Martract meets earnings targets in its first year of ownership.
"This is an exciting acquisition for the group, which strengthens our existing market position and gives significant opportunity to penetrate new markets," said Pressure Tech Chief Executive John Hayward.
Shares in Pressure Technologies were up 2.0% at 140.25 pence on Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Pressure Tech (PRES)