Black Country engineering firms set for £16m takeover

TWO Black Country engineering firms are set for takeover as part of a £16.4m deal that will see Yorkshire-based support services firm Redhall take on the assets of Mount Engineering.

Redapt Engineering, in Wednesbury and Walsall-based Raxton are both subsidiaries of Mount.

The Mount board have recommended shareholders in the York-based firm accept the offer of 70p per share, a 26% premium on the closing price yesterday.

Wakefield-based Redhall said the move would strengthen its presence in the oil and gas sector, improve its specialist manufacturing capability and increase operating margins.

David Jackson, executive chairman of Redhall, said: “We are delighted to bring the Mount business into the Redhall Group.

“We believe this acquisition will deliver significant improvement in operating margin and will strengthen the Redhall Group’s presence within the global oil and gas markets, furthering our ability to cross-sell the Redhall brand within our expanding client base.”

Redhall has already received acceptances of its offer representing 45% of the shares in Mount Engineering which in addition to Redapt and Raxton also operates Hi-Flow Valves in Suffolk.

Alan McClue, executive chairman of Mount, said: “We believe that integrating Mount’s brand leading products into Redhall’s specialist manufacturing business focussing on high hazard markets will assist Redhall in the development of those global markets.

“We believe that the offer represents a good opportunity for Mount Shareholders who wish to realise their investment.”