Finance deal puts 
engineer on path to 
more acquisitions

ACQUISITIVE engineer ​Pressure Technologies ​is to buy ​precision engineering group ​Quadscot Holdings ​for up to £10.3m and said it has agreed a new £25m finance package with Lloyds Bank Commercial Banking. ​​

Sheffield-based PressureTech​ said Quadscot will become part of its engineered products division and it expects the acquisition to be earnings ​enhancing immediately.​

The deal comes just a fortnight after PressureTech bought ​New Zealand-based company ​​Greenlane Biogas for up to £12.4m.​

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​​The maximum total ​payment for the Quadscot acquisition is £10.3m (plus cash balances), including an initial cash consideration of £7.3m with additional deferred payments, split over two years, of up to a maximum of £3m, based on Quadscot’s future financial performance.

The initial consideration will be met from the bank facilities and existing resources.

Alan Wilson, chairman of PressureTech, said: “The acquisition of Quadscot is further evidence of the group’s ability to identify well-run, profitable businesses that will benefit from being part of Pressure Technologies, whilst also making a significant contribution to the future performance of the group.

“Quadscot has an excellent reputation in its market and we are delighted to welcome all of the employees to the group.”

​​Analyst Richard Hickinbotham said: “We believe the acquisition to be an excellent fit with the ​g​roup’s existing businesses, Al-Met and Roota Engineering. ​Quadscot is profitable and cash generative, and it has good near-term order visibility. There are also significant opportunities to further expand Quadscot’s customer base.”