Pressure Technologies, the Sheffield-based specialist engineering group, has exchanged contracts and agreed the sale of PT Precision Machined Components (PMC) to Raghu Vamsi Machine Tools, a manufacturer of precision engineered components based in India.
The deal is for an initial enterprise value of £6.2 million with the potential to increase to £7.7 million dependent on the future performance of the division.
PMC manufactures highly specialised components for use in safety-critical subsea and surface flow control applications, serving global oil and gas OEM customers through its Al-Met, Roota Engineering and Martract operations in the UK.
PMC was identified as non-core by Pressure Technologies, with a shift in strategic focus to the development and growth of the Group’s principal division, Chesterfield Special Cylinders (CSC).
The sale simplifies the corporate structure of the Group and leaves CSC as its only operating business. The Board is now focused strategically on the development and growth of CSC in defence and hydrogen energy markets and in through-life Integrity Management services.
Chris Walters, Chief Executive of Pressure Technologies plc, said: “We are delighted to announce the sale of PMC to Raghu Vamsi Machine Tools and look forward to seeing the continued progress of the business under its new ownership, where plans for strategic development and growth present exciting opportunities for the combined businesses, their global customers and their employees.
“The completion of this strategic divestment will allow us to focus our resources on the development and growth of Chesterfield Special Cylinders in defence and hydrogen energy markets and in the provision of through-life inspection, testing and recertification services over the medium and longer term.”
Vamsi Vikas Ganesula, Managing Director of Raghu Vamsi Machine Tools, said: “We are delighted with the strategic acquisition of the PMC business from Pressure Technologies. The respected brands of Al-Met, Roota Engineering and Martract will complement our existing engineering businesses and deliver strong operational and commercial synergies as we continue to expand our international footprint.
“We are very excited by the opportunities presented in the global oil and gas market with the blue chip customer base of PMC and will now work closely with our new colleagues in the UK to develop the long-term manufacturing capability and reach of our combined businesses.”
