Acal acquires German specialist electronics business

MTC is a specialist provider of Electromagnetic shielding products to the European and Asian industrial electronic markets. Based in Germany, with a manufacturing operation in South Korea, MTC employs 20 staff. The company will form a separate business unit within Acal’s Electronics division and will retain its strong independent brand identity. Additionally, a deferred cash consideration of up to €1.1m (£1.0m) will be payable in January 2013 subject to the business achieving agreed growth targets over the period to 31 December 2012. Mr G Bächer will remain with the business. MTC’s revenues for the year ended 31 December 2010 were €2.9m (£2.5m) and it generated a pre tax profit of €0.5m (£0.4m). Gross assets, excluding cash balances, at 31 December 2010 were €0.5m (£0.4m). Revenue and profitability for the nine months to 30 September 2011 were 15% ahead of the prior year. The acquisition is expected to be earnings enhancing on an underlying profits basis for the Group’s year ending 31 March 2012. Nick Jefferies, Group Chief Executive of Acal plc said: “The acquisition of MTC is a further step in the implementation of our specialisation strategy. Operating in a rapidly growing niche, they bring a strong range of own brand Electromagnetic shielding products into the Group, which we plan to sell throughout Acal's European organisation. We are delighted to welcome MTC into the Group. A combination of specialist acquisitions and a move towards more highly differentiated specialist products is driving higher margins which we anticipate will lead to increased profitability in the first half in line with our expectations. With a strong balance sheet and in excess of £30m of banking facilities, the Group is well positioned to deal with changes in demand as a result of the uncertain economic conditions, as well as opportunities that may arise."