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Electronics Production | May 25, 2007

MTL acquires Elpro

The MTL Instruments Group plc announces the acquisition of all the shares in Elpro International Pty Ltd an Australian based developer and supplier of wireless solutions, from the Queensland Development Fund and Directors of Elpro.
The total consideration of AUD$28.5m (£12.0m) will be paid from new banking facilities. The consideration includes repayment of bank and shareholder loans of AUD$1.5m (£0.6m) and AUD$1.1m (£0.5m) respectively.

Following the transaction, it is expected that the Elpro business will be able to extend its international customer base by leveraging MTL's existing sales channels and OEM relationships. It will also improve Elpro's purchasing power. Bringing Elpro into MTL will complement MTL's Open Control Components portfolio and add wireless capability to MTL's product range as end-users seek to add more measurement points on their plants without incurring the expense of extra wiring.

In the year to 30 June 2006, Elpro achieved a pre-tax profit of AUD$1.2m (£0.5m) on sales of AUD$8.2m (£3.4m). The gross assets of Elpro as at 30 June 2006 amounted to AUD$8.6m (£3.6m). The Directors believe that the acquisition will be earnings enhancing in the first year of ownership (note).

MTL will be buying three entities – Elpro International Pty Ltd, the holding company, Elpro Technologies Pty Ltd, the Australian based operating company and Elpro Technologies LLC (USA) the US based operating entity. The existing management team have strongly supported the acquisition by MTL and have been retained by the company.

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