Posted to News on 21st Feb 2008, 10:04
MTL Instruments Group buys into RTK
The MTL Instruments Group is acquiring a 90 per cent stake in RTK, a specialist in the design and manufacture of process alarm equipment, displays and interface products, for £3.7million in cash. Immediately prior to the acquisition, the RTK Group was restructured with a new company being set up, which acquired the business and assets of the UK RTK company as well as a 51 per cent stake in RTK's USA distribution company. MTL has taken a 90 per cent interest in this new entity and the minority interest remains with the previous managing director, Tim McLeman.
RTK has established a strong position as an international provider of alarm handling and annunciation equipment for the utilities and process control markets. RTK has specific expertise in the application of alarm handling apparatus in hazardous and potential flammable environments, which suits MTL, as it claims to have a world-leading position in the provision of hazardous area control and instrumentation equipment.
Following the transaction, it is expected that the RTK business will be able to extend its international customer base by leveraging MTL's sales channels and OEM relationships. RTK will also have an opportunity to improve its competitiveness by utilising MTL's purchasing power. The directors believe that the acquisition will be earnings enhancing in the first year of ownership.
Graeme Philp, MTL's Chief Executive, comments: "RTK is an excellent acquisition for MTL. Over the last few years, it has developed an innovative and highly competitive range of annunciation equipment and it is expanding its international reach considerably. MTL will help to continue and accelerate that process. RTK also has expertise and experience in building semi-custom assemblies and sub-systems. This added value activity is increasingly being requested by MTL's customers."
