Pressure secures £25m finance deal and makes another acquisition
PRESSURE Technologies has secured a new £25m finance package as it also announced another acquisition.
The funding from Lloyds Bank Commercial Banking includes a £15m revolving credit facility and an uncommitted £10m accordion facility and will support the company’s plans to grow organically and through acquisitions.
Sheffield-based Pressure also announced its £10.3m acquisition of Quadscot, a provider of computer controlled and conventional precision engineering and machining services to the oil, gas and petrochemical industries, which will become part of the Engineered Products division
Pressure Technologies specialises in the development of technology that contains and controls liquids and gases in pressurised environments. The company’s products and engineering solutions are used in the defence, oil & gas, alternative energy and industrial gases markets.
The AIM-listed business posed a 21% increase in turnover to £19.9m and a 53% increase in underlying operating profit to £2.17m for the half year ending March 2014.
Earlier this year it completed the acquisition of Rotherham-based Roota Engineering and recently announced the intention to acquire New Zealand firm Greenlane Biogas.
Alan Wilson, chairman of Pressure Technologies, said: “We are delighted to have secured these new facilities on competitive terms, which provide Pressure Technologies with further capacity and firepower to support the growth of the group, both organically and through acquisition.”
Martin Beckett and Saranjit Lall from Lloyds Bank’s Strategic Finance team and Lee Bloodworth from the Mid Markets division advised on the refinance.
Dean Gormley and Laura Mitchell from Irwin Mitchell acted for the bank. Roger Dawson of hlw Keeble Hawson acted for Pressure Technologies.
Martin Beckett, regional director for Lloyds Bank’s strategic finance team in the North, said: “Pressure Technologies continues to deliver strong revenue growth and its management team are skilled at identifying and integrating new businesses into the wider group. We have a long standing relationship with the business and are very happy to provide financial support for their growth plans.”
