Corac completes Acquisition of Shaw Sheet Metal Co. Ltd.

RNS Number : 2743E
Corac Group Plc
09 February 2015
 
CORAC GROUP PLC

("Corac" or the "Company")

 

Corac completes Acquisition of Shaw Sheet Metal Co. Ltd.

Corac Group plc today announces the acquisition of the business and assets of Shaw Sheet Metal Co. Ltd. The purchase was completed for a cash consideration of £0.8m, funded using the Groups existing cash (£9.6m at 31 December 2014) with an expected payback of less than 3 years.

Shaw Sheet Metal operates from two facilities in the Greater Manchester area. The company is active in laser cutting and specialist sheet metal fabrication, and will be integrated into the Group's other activities in the region.

The acquisition supports Corac's evolution as a specialist engineering company and is expected to generate further business growth.  It integrates added-value fabrication with specialist engineering services for our established energy and petrochemical processing customers. Beyond this, it allows us to open new opportunities for high-integrity fabricated products in Corac's other markets, particularly in aerospace and defence sectors, and gain new customers through Shaw's established relationships.

Corac Group Chief Executive Phil Cartmell commented:

"I am very pleased to have completed this acquisition as we prepare ourselves for a very exciting year ahead in 2015. Buying Shaw helps Corac Group to build an even more capable specialist engineering business to support our customers' critical applications.  We will use this to serve customers more fully from the connected skills across the Group and to work across adjacent sectors where our strengths in complex engineering at the highest quality are most valued.

"We are committed to working with our customers and partners to the greatest extent possible, and will build our capability to do this through organic growth and selected acquisitions in our core markets of Aerospace & Defence, and Energy & Process Industries."