Redhall makes £16.4m offer for Mount Engineering

The Wakefield-based group believes the move will increase its presence in the oil and gas sector, strengthen its manufacturing capability for specialist equipment engineered for high hazard markets, and strengthen the group's existing sales channels and improve operating margins.

David Jackson, executive chairman of Redhall, said: "We are delighted to bring the Mount business into the Redhall Group.

"We believe this acquisition will deliver significant improvement in operating margin and will strengthen the Redhall Group's presence within the global oil and gas markets, furthering our ability to cross-sell the Redhall brand within our expanding client base."

The Mount board have recommended shareholders in the York-based firm accept the offer of 70p per share.

Alan McClue, executive chairman of Mount, said: "We believe that integrating Mount's brand leading products into Redhall's specialist manufacturing business focussing on high hazard markets will assist Redhall in the development of those global markets.

"We believe that the offer represents a good opportunity for Mount Shareholders who wish to realise their investment."

The Leeds office of Hammonds is advising Redhall. Altium is acting as sole financial adviser and corporate broker to Redhall and Charles Stanley is acting as financial adviser to Mount Engineering.