Al-Met under Pressure after buyout
Who?
Chesterfield’s Pressure Technologies
Did what?
Has bought Al-Met, a niche manufacturer of specialised, precision-engineered valve wear parts used in the oil and gas industries, for £2.3m.
What does this mean?
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 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.”
Who advised?
Fairfax IS PLC acted as the nominated adviser and broker for Pressure.
Insider comment:
Al-Met is based at a single production site in Pontyclun, near Cardiff, and employs 29 staff. Director and general manager Tony Chess and 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 £2m is subject to an adjustment based on net assets at completion. Contingent consideration of £250,000, 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.
