Acquisition of Al-Met Limited

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[{"type":"text","content":"\n RNS Number : 7957G Pressure Technologies PLC 08 February 2010  \n \n\n \nACQUISITION OF AL-MET LIMITED\n \nPressure 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.  \n \nAl-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.  \n \nThe 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.\n \nAl-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.  \n \nThe 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.\n \nUnaudited 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.\n \nJohn Hayward, Chief Executive of Pressure Tech...

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