Carclo looks to US growth with multi-million pound acquisition
WEST YORKSHIRE plastics manufacturer Carclo has acquired American company Precision Tool & Molding in a deal worth up to US$6.5m (£5.3m).
It has also announced a proposed placing to raise approximately £8m, which will be used to repay the short-term debt facility put in place to fund the deal.
The aerospace and supercar lighting manufacturers said the acquisition of the business, trading as Precision Tool & Die (PTD) will enhance the ability of the group to grow its US operations by extending its global offering to PTD’s existing customers. The deal was done by Carclo’s US subsidiary CTP Carrera.
PTD provides high precision mould tooling, injection moulding and assembly for the medical device industry. PTD is based close to Boston, in Derry, New Hampshire in the US.
In 2015, PTD reported unaudited turnover of US$6.9m (£5.7m), unaudited profit before tax of US$1.6m (£1.3m) and unaudited net assets of US$2.2m (£1.8m).
Chris Malley, chief executive of Carclo, said: “The acquisition of Precision Tool and Die will bring significant new capabilities to Carclo Technical Plastics and enhance our offering within the healthcare sector. The combination of Carclo Technical Plastic’s knowledge and experience of high volume manufacturing and customer validation protocols, together with PTD’s expertise in toolmaking and product prototyping, will significantly widen Carclo Technical Plastic’s offering to our combined customer base.
“PTD has a strong track record of providing innovative and rapid technical solutions for its customer base and its reputation is strong within the Boston based medical device manufacturers. This is a testament to the skills, energy and commitment of both the owners and the employees of PTD and we look forward to welcoming them into the Carclo Group.”
Addleshaw Goddard provided legal advice to Carclo on the UK aspects of the acquisition and on the fundraising (Richard Lee, Jeremy Cruse, Garry Elliott and David Handy).
Peel Hunt is acting as sole broker and sole bookrunner on the deal.
