Pressure Technologies takes stake in Texan manufacturer

PRESSURE Technologies today announced its investment in a leading manufacturer based in Texas as it looks to capitalise on the growing market in the transportation of gases.

The Sheffield-based business, which runs engineered products, cylinder and alternative energy divisions, has agreed to make a strategic investment to acquire 40% of the common stock of GTM Manufacturing, a leading manufacturer of high pressure vessels for gas transport solutions based in Amarillo.

Under the terms of the investment, the company is providing a US$4m loan to GTM, of which US$500,000 will convert to a 40% stake in GTM’s common stock.

Pressure Technologies said it is funding the loan to GTM from its existing resources.

It has also been granted an option to acquire a further 40% stake in GTM and will be providing a working capital loan facility to GTM.

Earlier this month, Pressure Technologies said it was planning a major investment strategy over the next two years and was on the lookout for acquisition targets as it announced record results.

Founded in 2008, GTM is part of the Kelley Family of Companies in Texas, a group that has led the speciality gas transportation industry in the United States and globally for more than 60 years.

Following the Investment, GTM will be re-named Kelley GTM.

Ken Kelley, founder and president of GTM, will continue to work for GTM alongside other senior management while representatives of Pressure Technologies will join the board.

Alan Wilson, Pressure Technologies chairman, said: “It is the board’s strategy to complement organic growth with acquisitions that enhance and broaden the company’s existing operations. We believe that the agreement reached with GTM affords Pressure Technologies an excellent means by which to participate in the growth in the market for the transportation of gases across a wide number of sectors, particularly oil and gas where we already have considerable experience.

“The investment allows the company to join the expertise of the design and manufacture of high pressure gas cylinders in our subsidiary Chesterfield Special Cylinders, with GTM’s expertise in the production of light-weight composite cylinders and to develop and expand GTM’s product range for use in the United States and subsequently further afield. We are very excited to be working with Ken Kelley and his team at GTM.”