Engineer Pressure Technologies is to make an investment in a leading manufacturer of high pressure vessels for transporting gas in Texas.
The Sheffield-based firm will buy a 40 per cent stake in GTM Manufacturing, which is based in Amarillo.
Pressure Technologies will loan £2.4m to GTM, of which £300,000 will convert to a 40 per cent stake in GTM’s stock on January 1.
Earlier this month, Pressure Technologies said it was on the hunt for acquisitions after reporting record annual results.
The company, which counts the Royal Navy and the US Air Force among its customers, is looking for acquisitions which add value to its existing portfolio.
The group makes gas cylinders for oil rigs and a range of equipment for use on submarines such as the Royal Navy’s Astute class.
Pressure Technologies said the company is funding the loan to GTM from its existing resources.
It has been granted an option to buy a further 40 per cent stake in GTM.
Founded in 2008, GTM is part of the Kelley Family of Companies in Texas, a group that has been a leading player 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 and Pressure Technologies’ directors will join the board of GTM.
Alan Wilson, Pressure Technologies chairman, said: “It is our strategy to complement organic growth with acquisitions that enhance and broaden the company’s existing operations.”