Last checked at 23 Oct 2018 07:00
23 October 2018
Avingtrans Plc
("Avingtrans" or the "Company" or the "Group")
Acquisition of Tecmag, Inc, Texas, USA
Avingtrans PLC (AIM: AVG), which designs, manufactures and supplies critical components, modules and associated services to the energy and medical sectors is pleased to announce the acquisition of 100% of the issued share capital of Tecmag, Inc of Texas USA (the "Acquisition") for a total consideration of $243k, including the assumption of Tecmag's debt.
Tecmag, based in Houston, Texas, USA, with 11 members of staff, was formed in 1983 by its founder John Delayre. It designs, manufactures, tests and installs instrumentation, including full consoles, system upgrades, and solid-state probes, mainly for Magnetic Resonance Imaging (MRI) and Nuclear Magnetic Resonance (NMR) systems. Dr Delayre will remain with the business in a consultancy capacity for a transitional period post-acquisition and then to assist with the development of new products, under a redefined strategy for the business.
The Acquisition will integrate Tecmag's expertise in consoles and spectrometers with that of Scientific Magnetics, acquired by the Group in February 2017, in the area of superconducting magnets and cryogenics. The combination of these two businesses - together with the Group's existing capabilities - means that Avingtrans and its partners will have the ability to produce complete MRI, or NMR systems.
This continued expansion and strengthening of the Group's Medical Division provides the platform for further investment in the imaging sector, ultimately driving towards future profitable growth.
Clint Gouveia, the Managing Director of Scientific Magnetics, commented
"We are delighted to have completed this deal, which will deliver a step change in our capability in MRI and NMR key markets. In due course, we will announce our new product intentions for niche MRI and NMR markets, in conjunction with our partners. We welcome John and the Tecmag team to the Group and look forward to building a world-class imaging business together."
Steve McQuillan, CEO of Avingtrans, commented:
"Although relatively small, this is a strategically important Acquisition for Clint and the Scientific Magnetics team. It aligns with our "pinpoint-invest-exit" (PIE) strategy in medical and industrial imaging. This transaction cements the foundations of the platform that Avingtrans is constructing, to create enhanced shareholder value by bringing together niche businesses whose individual capabilities can be enhanced by fusing them together to achieve critical mass. We are looking forward to working with the Tecmag team to deliver on potentially significant opportunities across a number of new sectors in these exciting markets."
Consideration for the Acquisition is $243k, including the assumption of Tecmag's existing debt facility which, as at 22 October 2018 totalled $223k. For the year ended 31 March 2018, Tecmag, Inc reported turnover of $1,415k and a profit before taxation of $16k.
Enquiries:
Avingtrans plc Steve McQuillan, CEO Stephen King, CFO
| 0135 469 2391 |
N+1 Singer Shaun Dobson Lauren Kettle
| 0207496 3000 |
Newgate Communications (Financial PR)Adam Lloyd Tom Carnegie | 020 7653 9850 |
About Avingtrans
Avingtrans is engaged in the provision of highly engineered components, systems and services to the energy, medical and traffic management industries worldwide.
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