Science Group to buy TP Group in £17.5m deal

(Sharecast News) - Engineering company TP Group surged on Monday after agreeing to be bought by rival Science Group for around £17.5m.

Under the terms of the deal, TP shareholders will be entitled to receive 2.25p a share in cash. This is a premium of around 190% to the closing share price on Friday.

Science Group already owns a stake of about 28% in TP Group.

"The independent Science Group directors consider that there are significant potential synergies with TP Group and that a combination would be attractive to the employees and customers of both organisations," it said.

"TP Group operates primarily in the defence and aerospace sectors which would be complementary to Science Group's activities, with minimal overlap."

At 1545 BST, TP Group shares were up 180% at 2.18p.