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Trifast adds Precision Technology Supplies to group in £8.5m deal
Industrial fastenings group Trifast has acquired Precision Technology Supplies, a supplier and distributor of stainless steel fastenings in the UK, it announced on Thursday.
The London-listed firm said the acquisition carried an initial cash consideration of £8.5m, subject to adjustment based on the net cash in the business at completion, with contingent cash consideration of up to £2.5m.
It said the acquisition brought the opportunity to build the group's presence within the stainless steel fastener market, and enhanced its core OEM customer offering, supporting ongoing distributor sales growth.
The acquisition would also extend Trifast's customer base and sectors served, and provide a "proven" e-commerce platform.
Synergy benefits were expected in the form of more efficient sourcing, with the deal expected to be earnings enhancing in the financial year ending 31 March 2019.
"We believe that this acquisition will be earnings enhancing in the financial year-ending 31 March 2019," said Trifast CEO Mark Belton.
"It will enable us to provide an enhanced offering across our customer network and also strengthen our position when it comes to purchasing synergies and logistics."
Belton said PTS would run as a stand-alone business within the TR family of businesses, however it would - like other brands within the TR portfolio - "significantly benefit" from the group's marketing and global sales services, which would open-up international markets and access to TR's wider customer network.
"We anticipate that within the enlarged group, PTS will be very well placed to drive further sales growth over the coming years.
"Having got to know PTS well, we can see that their additional skills, customers and end markets will further strengthen our profile within the stainless steel market.
"Building on our product offering and our technical expertise will serve us well as we continue to roll out our strategy for growth."