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RNS Number : 7957G
Pressure Technologies PLC
08 February 2010
ACQUISITION OF AL-MET LIMITED
Pressure Technologies plc ("Pressure Technologies" or the "Group) is pleased to announce the acquisition of Al-Met Limited
("Al-Met" or the "business"), a niche manufacturer of specialised, precision engineered valve wear parts used in the oil
and gas industries.
Al-Met's products are used in high-pressure choke and flow control valves, designed to regulate flow volumes in extremely
demanding applications in the subsea and surface oil and gas industries. The business, which was established in 1985, has
developed a leading edge capability in precision machining carbides and superalloy matrix materials. The ability to
combine high alloy steels with tungsten carbide inserts and specialised coatings gives Al-Met its niche position with its
customers, global wellhead and subsea equipment OEMs.
The business is well invested with a quality range of CNC turning, milling and grinding equipment. It is based at a single
production site in Pontyclun, near Cardiff, and employs 29 staff, including 20 highly-trained machinists. The director and
general manager, Tony Chess, along with his management team, will remain with the business following the acquisition.
Al-Met has been acquired for cash consideration of up to £2.25m. The initial consideration of £2.0m is subject to an
adjustment based on net assets at completion. Contingent consideration of £0.25m, which will become payable depending on
Al-Met's order intake level in the 12 month period to 31 December 2010, has also been placed in an escrow account.
The maximum total cash consideration payable, including the initial cash consideration, net asset adjustment and contingent
consideration, is £2.25m. Any net asset adjustment would only reduce this amount.
Unaudited management accounts for Al-Met for the 12 months ended 31 December 2009 show turnover of £4.2m, adjusted
operating profits of £0.3m, adjusted EBITDA of £0.5m and gross assets of £2.0m. The initial cash consideration, net of
£0.25m of cash acquired as part of the deal, represents a multiple of 3.5 times unaudited historical adjusted EBITDA.
John Hayward, Chief Executive of Pressure Technologies, said: "Al-Met is an established, well invested, niche business,
operating in a sector we know and understand. The highly skilled workforce and the focus on design and quality fit well
culturally with our other businesses. This is an exciting acquisition for the Group as there is a clear opportunity to grow
the business organically by expanding both the customer base and the product portfolio."
For further information, please contact:
Pressure Technologies plc John Hayward, Chief Executive James Lister, Group Finance Director Today: 01653 618 016 Thereafter: 0114 242 7500 www.pressuretechnologies.co.uk
Rawlings Financial PR Limited Catriona Valentine Keeley Clarke Tel: 01653 618 016 www.rawlingsfinancial.co.uk
Fairfax IS PLC Nominated Adviser and Broker Simon Bennett Ewan Leggat Tel: 0207 598 5368
www.pressuretechnologies.co.uk
Rawlings Financial PR Limited
Catriona Valentine
Keeley Clarke
Tel: 01653 618 016
www.rawlingsfinancial.co.uk
Fairfax IS PLC
Nominated Adviser and Broker
Simon Bennett
Ewan Leggat
Tel: 0207 598 5368
Company description:
Pressure Technologies is the holding company for Chesterfield Special Cylinders Limited ("CSC"). CSC designs, manufactures
and offers retesting and refurbishment services for a range of speciality high-pressure, seamless steel gas cylinders for
global energy and defence markets. The business has been conducted under the "Chesterfield" brand which is a long
established name in the cylinders and specialised pressure vessel market.
Chesterfield BioGas ("CBG"), an operating division of Pressure Technologies, formed in November 2008 following the signing
of a co-operation agreement with Greenlane# Biogas Limited, the world leader in biogas upgrading from raw biogas to vehicle
quality fuel, gives Pressure Technologies exclusive rights to market Greenlane# equipment in the UK and Eire. Chesterfield
BioGas will provide turnkey solutions for the cleaning, storage and dispensing of biomethane, produced from waste water
treatment and anaerobic digestion of organic waste.
This information is provided by RNS
The company news service from the London Stock Exchange