Engineer Pressure Technologies has agreed to invest in a US manufacturer of gas containers.
The Sheffield-based firm will acquire 40 per cent of the common stock of GTM Manufacturing, based in Amarillo, Texas.
The company is providing a 4 million US dollar loan to GTM, of which 500,000 dollars will convert to a 40 per cent stake in GTM’s common stock on January 1,
Pressure Technologies, which makes gas cylinders for oil rigs and a range of equipment for use on submarines such as the Royal Navy’s Astute class, said it is funding the loan to GTM from its existing resources.
The company has also been granted an option to acquire a further 40 per cent stake in GTM and will be providing a working capital loan facility to GTM.
Founded in 2008, GTM is part of the Kelley Family of Companies, a group that has worked in the speciality gas transportation industry for over 60 years. Following the investment, GTM will be re-named Kelley GTM.
Ken Kelley, founder and president of GTM, will continue to work for GTM alongside other senior management. In addition, representatives of Pressure Technologies will join the Board of GTM.
Alan Wilson, Pressure Technologies chairman, said: “It is the board’s strategy to complement organic growth with acquisitions that enhance and broaden the company’s existing operations.
“We believe that the agreement reached with GTM affords Pressure Technologies an excellent means by which to participate in the growth in the market for the transportation of gases across a wide number of sectors, particularly oil and gas where we already have considerable experience.”
He added: “The board believes that the combination of Pressure Technologies and GTM will enhance the ability to capitalise on the growing market in the transportation of gases.”