Pressure Technologies acquires New Zealand firm in £12.4m deal

PRESSURE Technologies is to acquire the business and certain assets of New Zealand-based Greenlane Biogas Holdings in a deal worth up to £12.4m.

Greenlane is a developer and global supplier of patented technology for upgrading raw biogas to high purity biomethane. 

The maximum total consideration for the acquisition is £12.4m, comprising an initial consideration of £6m, with additional deferred payments, split over four years, of up to a maximum £6.4m, based on the future financial performance of Greenlane. The initial consideration will be met from the group’s existing cash resources.

Alan Wilson, chairman of Sheffield-based designer and manufacturer of engineering solutions for high pressure markets, Pressure Technologies, which runs engineered products, cylinder and alternative energy divisions, said: “We believe that this deal represents an excellent opportunity to expand the group’s Alternative Energy division with the acquisition of a business, intellectual property, technology and employees that we know very well.  Our intention is to combine Greenlane’s proven patented technology with our commercial and management capabilities to capitalise on the significant global market opportunity.
 
“The acquisition will be integrated rapidly into the group over the next six months and the board expects it to be earnings enhancing in the year ending 1 October 2016.”
 
Rob Fenwick, chairman of Greenlane, said:  “The combination of Greenlane and Pressure Technologies makes very sound business sense.  Being part of a strong, growing AIM-listed plc gives Greenlane the backing it needs to fulfil its true potential.
 
“Greenlane is considered one of New Zealand’s global cleantech success stories. Under Pressure Technologies’ ownership it secures a good cultural fit and I believe the acquisition delivers the best possible value to the stakeholders of both companies.”
 
The effective date of the acquisition is expected to be October 1.

Earlier this year Pressure acquired Rotherham-based Roota Engineering for £13.5m.

Click here to sign up to receive our new South West business news...
Close