Manufacturing giant TP Group says it has taken over ownership of Westek Technology, a Wiltshire based technology outfit, for a sum of £3m – being a consideration fee funded from existing resources.
Westek technology provides high-performance, rugged servicers and supplementary equipment for its industrial and military customers in the UK, US and Europe.
The engineering giant says its acquisition of Westek is expected to be from earnings accretive for its full financial year ended December 2019.
The Aim-listed group will make an additional payment of £500,000 on delivery of some transition activities in the first twelve months of its acquisition.
According to the firm, its take take-over of Westek is a “strategic addition of proven capability in the design and manufacture of advanced electronic systems” and has advanced “vertical integration opportunities with the rugged control systems already delivered with its packaged equipment offerings.”
Westek 2017 report shows the company earned £3.5m in revenues and pre-tax profits of £200,000. At the end of the financial year, Westek reported gross assets of £2.3m – an indication the company made gains in the business year.
“This acquisition complements our existing activities in complex, rugged equipment, yet in a different application area and with different customers. The integration of Westek into the Group will, I believe, add significantly to their outreach and accelerate their growth whilst contributing to the success of TPG,” Chief executive Phil Cartmell, said in a statement.
As of 1040 BST, TP shares had slipped 1.56% to 6.30p.