Redhall Group has announced a £16.4M takeover of York-based Mount Engineering.
The Wakefield-based engineering support services company hopes the move will give it more prominence in the oil and gas sector, increase specialist manufacturing capabilities and improve operating margins.
On 21 September, the board at the York-based firm recommended that shareholders accept the 70p per share offer, which was a 26% premium on the company’s closing price.
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.”
Mount Engineering revealed pre-tax profits of £1.19M for the first half of 2010 on 22 September, which is slightly lower than the £1.42M registered for the same period in 2009.