£16m sale of engineering division proposed

600 Group, a diversified industrial engineering company, has entered an agreement to sell its machine tool solutions division to Timesavers Acquisition for $21m (£15.9m).

The sale marks the culmination in 600 Group’s shift in strategic focus with the chairman Pail Dupree noting the move by the business to “focus on our industrial laser systems businesses has already successfully generated higher margins, large new customer wins and a record order book.”

Dupree added that the funds from the sale would be used to strengthen the Elland-based group’s balance sheet and accelerate the growth of its laser division.

The deal includes the entire issued share capital of each of 600 UK Limited, Colchester GmbH, 600 Machinery Australia Pty Ltd and Clausing Industrial Inc.

The sale is conditional upon the approval of shareholders, which will be sought at a general meeting on Thursday 24 March.