CPS bought in £35m deal

Schenck, which has offered 82.5p per share for the Doncaster-based group, has already received the backing of shareholders collectively holding a 54.1 per cent stake in CPS for the deal.

CPS chairman Jim McColl said: "Our board is unanimously recommending this acquisition by Schenck Process because of the clear benefits we see for the company's shareholders, customers and employees."

CPS last week announced half-yearly pre-tax profits of 1.69m, operating profits of 2.75 and revealed the value of its order book had risen to 23.3m.

Dr Jochen Weyrauch, president and chief executive of Schenck Process Holding GmbH, said: "We have studied the proposed acquisition in great detail and believe its merits are compelling for both CPS and the Schenck Process Group. We share similar visions and business philosophies and with their market leading MAC Equipment and Clyde Materials Handling brands, our combined product offering strengthens our position to deliver energy saving and environment solutions to target markets within the building materials, chemical, food, metals and mineral industries.

"Furthermore, the geographic reach and product and systems offerings of the Schenck Process Group and CPS are highly complimentary and fundamental to the strategic rationale for the acquisition. In particular, given the Schenck Process Group's penetration of emerging markets, especially China, India and South America, we expect to be able to leverage our position in order to significantly accelerate CPS' growth in these increasingly important markets."

Greenhill is acting as the sole financial adviser to Schenck Process. Cairn Financial Advisers and PricewaterhouseCoopers are acting as financial advisers to CPS.