Engineering firm Pressure Technologies is to diversify with the acquisition of Martract, a profitable, cash-generative engineering business that specialises primarily in the grinding and lapping of ball and seat assemblies and gate valves.
The maximum total consideration for the deal is £4.3m.
Pressure Technologies is keen to expand into other areas amid tough market conditions in the oil and gas industry.
The Sheffield-based firm said Martract is a highly specialist, niche business and the market leader in its field through its unrivalled intellectual property and strong, longstanding customer relationships.
The business is well known to the group and has been a key supplier to the Precision Engineering Division for over 15 years.
Pressure Technologies said the acquisition is a strong strategic fit with its PMC Division and it will join the other businesses in this division; Roota Engineering, Al-Met and Quadscot.
Around 60 per cent of Martract’s revenue is generated outside of the oil and gas market.
John Hayward, CEO of Pressure Technologies, said: “This is an exciting acquisition for the Group, which strengthens our existing market position and gives significant opportunity to penetrate new markets.
"Martract’s reputation for technical ability and quality sits well with our group capabilities and we are delighted to welcome its dedicated and highly-skilled workforce to the group.”