Redhall makes £16.4m offer for Mount
ENGINEERING support services firm Redhall has agreed a deal to takeover Mount Engineering with an offer worth £16.4m.
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 was set up in 2007 and has two subsidiaries in the West Midlands, Redapt Engineering and Raxton, as well as 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.”
Mount Engineering today announced pre-tax profits of £1.19m for the six months to the end of June, down from £1.42m in the same period last year.
Law firm Hammonds is advising Redhall on the takeover, having previously helped the firm with its 2008 acquisition of Chieftain Group.
Steven Glover, who leads the firm’s corporate team in Leeds, said: “We are delighted to have acted for Redhall again on this transaction and to have assisted in the continued development and growth of the group.”
Mr Glover is being assisted by corporate associates Jo Bell and Joy Irving.
Altium is acting as sole financial adviser and corporate broker to Redhall and Charles Stanley is acting as financial adviser to Mount Engineering.
