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Hydratron to be sold to Pryme Group
Posted on Monday, 11 June 2018 11:00
Pressure Technologies, a manufacturer of industrial valves, has announced plans to sell Hydratron, which makes high pressure and flow control equipment, to Pryme Group.
The buyer will pay an initial sum of GPB 1.10 million in cash for the business, but may pay an additional amount of up to GBP 2.25 million at a later date, depending on the target’s trading performance over the year ended 31st May 2019.
Headquartered in Sheffield, the vendor, according to the press release, is a market leader that specialises in design and manufacturing of high pressure components and systems that focus on global energy and industrial gases markets.
The group’s activities are divided into: Precision Machined Components, Cylinders and Alternative Energy. Its client base spans the oil and gas, defence, industrial gases and alternative energy sectors.
Pressure Technologies has a global presence in the alternative energy segment and claims to be a world leader in biogras upgrading.
It has completed a number of its own acquisitions in the past, with targets including Al-Met, Greenlaine Biogas and Quadscot.
Citing a downturn in the oil and gas market, Hydratron posted a loss of GPB 470,000 million for the financial year ending 30th September 2017.
Pressure Technologies said it was selling the business as it feels it would be better served by an owner which can build on its critical mass and market position with immediate effect.
The proceeds of the sale will also be used to reduce the group’s debt.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 12 deals targeting metal tank (heavy gauge) manufacturing companies announced worldwide since the beginning of 2018.
The largest of these was worth USD 610.00 million and took the form of a capital increase by China International Marine Containers, which was announced in March.
© Zephus Ltd