600 Group snaps up US laser business
MANUFACTURER the 600 Group has acquired laser marking business TYKMA in full.
The West Yorkshire business acquired the remaining stake in the Ohio firm for £1.25m ($1.8m) funded by the Bank of America, as well as 12m shares of 1p.
It has bought the remaining 20% of the business, following the acquisition of the remainder in February 2015.
For the year to December 31, 2014, TYKMA reported net operating income of US$730,000 on revenues of US$8.40m.
The Electrox Laser Division is led by David Grimes, the principal shareholder in TYKMA, who will receive 6m ordinary shares and $990,000 for his remaining shares in the business.
This surprise move comes after shares in the 600 Group plummeted 31% in February 2016 due to the slowdown in the American market sector.
It was the group’s lowest closing price since September 2012.
600 Group executive chairman Paul Dupee said: “‘With the Laser Division now representing approximately 40% of the Group’s profitability, we are pleased to be able to acquire 100% ownership and at the same time align the interests of its divisional managing director, David Grimes, more closely with those of existing shareholders.
“We’re also pleased to report that trading conditions in our Machine Tools Division have improved in the last six weeks with stronger order books in both the US and Europe and some initial success through the new distributors we have established in S.E. Asia.
“Although it is difficult to anticipate if this will continue given the fragile economic conditions in many of the market we serve, we remain well positioned for growth wherever that may arise.”
600 Group had a difficult year last year in which the firm’s chief executive, Nigel Rogers stepped down following a challenging period.
