Redhall says aquisition will boost its presence in global oil and gas markets
Redhall has acquired York-based Mount Engineering for £16.42m.
The £65.4m-turnover engineering company specialising in defence and energy offered to buy out Mount shareholders at 70p a share.
Mount saw its revenue shrink in the six months to 30 June from £5m to £4.6m.
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.”
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.”
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