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Elektron Technology

  • BY: Andrew Hore |
  • POSTED: 23/04/2014 |

Acquisitive instrumentation products supplier Rototherm Group has taken a 3.28% stake in electronics and instrumentation supplier Elektron Technology Group, which is considering potential bids for the company or selling non-core businesses.

The share purchase did not do anything for the Elektron share price which fell 1.25p to 4.75p, which values the company at £5.67m.

South Wales-based Rototherm, which has been in existence since the 1840s, manufactures instrumentation for measuring temperature, flow, pressure and density. The customer base is oil and gas companies, power stations and pharma companies. Rototherm (www.rototherm.co.uk) says that it designed & manufactured world’s first steam pressure gauge for George Stephenson. Subsidiaries include British Rototherm, Thermocouple Instruments and Canongate Technology.

Business development director Tarkan Conger used to work in M&A at Kaupthing Singer & Friedlander and since he became involved Rototherm has made a number of acquisitions. In 2013, Conger was quoted in MergerMarket as seeking more acquisitions. In 2012, revenues were £10m and the strategy is to grow them to five or six times that level over a four year period. The focus of acquisitions was Asia and the UK.

It would appear that Rototherm would be interested in Elektron’s instrumentation activities which generate annual revenues of around £18m. These operations include instruments for the ophthalmic, radiotherapy, inspection, test, nanopositioning, microscopy, temperature and pressure management. The latter operations would probably fit with existing Rototherm activities while the others would take it into new areas.

Potential bidders for Elektron have to submit indicative proposals by 2 May.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFApril2014_55.pdf

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