Listed Yorkshire business wraps up £7.8m deal to acquire US firm

An industrial engineering company with a base in Elland has bought an American business for £7,836,927.

600 Group has acquired Control Micro Systems, (CMS) which is a solutions provider for integrated laser applications.

CMS has been acquired for £7,053,371 in cash and £783,707 worth of 600 Group shares.

The acquisition was funded from 600 Group’s cash reserves and existing facilities, plus a new $3.25m five-year term facility from Bank of America.

The share component consists of the issue of 4,500,000 new ordinary shares of 1p per share, representing approximately 4% of the total issued share capital prior to issue.

CMS has grown over recent years with revenues for the year ending 31 December 2018 of $11.6m, generating a reported pre-tax profit of $1.2m.

The company’s gross assets at 31 December 2018 were $7m, including cash and cash equivalents of $3.1m.

CMS provides turnkey, custom-designed and fully-automated laser process machines and systems to North American and international blue-chip customers, across industries including precision medical equipment, pharmaceutical and aerospace sectors.

600 Group said the acquisition of CMS would complement the group’s existing laser business, enhancing its customer offering through more sophisticated solutions to clients’ requirements, while CMS would benefit from the group’s established sales platform and marketing capabilities.

The American business is being acquired from founder and sole owner Tim Miller, who will remain with the firm for a minimum of three years to oversee the transition and provide technical expertise.

Paul Dupee, Executive Chairman of 600 Group, said: “The acquisition of CMS significantly enhances the group’s laser business and marks a further step forward in our strategy of building a global business across increasingly diversified niche markets worldwide.

“CMS has a long-established track record of delivering high quality customer solutions, and will likewise benefit from our established sales platform and marketing capability. 

“We are delighted to welcome CMS and its employees into the group.”