600 Group takes majority stake in US laser business for £3m
AIM-listed machine tools manufacturer 600 Group has acquired 80% of the stock of a US-based laser marking business for £3.04m.
The deal by Leeds-based 600 Group’s US subsidiary with TYKMA will be financed by an issue of loan notes which will also be used to repay existing debt and provide the group with additional working capital.
The first tranche of loan notes will raise an aggregate of £6.739m with up to an additional £1.761m to be raised in future.
TYKMA is a privately owned company based in Chillicothe, Ohio, which specialises in the design, production and distribution of laser marking systems for a broad range of industry applications.
These industrial laser marking systems are used for traceability, branding and component identification on metals, carbide, painted or anodized materials, most plastics and many other substrates and have been incorporated into the production processes of numerous US industrial companies in the electronics, medical, tooling and automotive sectors.
For the year to December 31, 2014, TYKMA reported net operating income of US$73,000 on revenues of US$8.40m.
The vendor management team will retain 20% of the common stock in TYKMA, and continue their full time management positions.
The TYKMA business will be fully integrated with Electrox, 600 Group’s existing laser business, which will be hived down into a new UK subsidiary, Electrox Laser.
600 Group said the combined business will realise “significant benefits from its additional scale and market penetration, together with enhanced operational and engineering capabilities.”
Nigel Rogers, CEO of 600 Group, said: “We are delighted to announce this strategic investment in the product identification industry segment. We share a common vision with the TYKMA management that the combination of Electrox and TYKMA will enable us to build a leading position in this fast developing marketplace, based on shared values of outstanding customer service, excellent product technology, unrivalled professionalism in sales and distribution, and depth of engineering expertise.”
