Business Weekly - Cambridge, UK

The electronic instruments and protection equipment maker for the process control and telecoms industries, MTL said that the £12m purchase price would be funded by new banking facilities and include repayment of Elpro's bank and shareholder loans of £500k and £600k respectively.

MTL said that it expects Elpro, which reported a pre-tax profit of £500k on sales of £3.4m last year, to be earnings enhancing in the first year of ownership.

Elpro is a provider of secure and reliable wireless solutions for applications in the process control, manufacturing and utility markets and shows a complementary fit to MTL's existing operations.

“Wireless Technology is forming an increasingly important part of the signal and data communication layer on modern process plants,” said MTL's Chief Executive, Graeme Philp. “ This acquisition positions MTL well for continued growth and success in this important area.”

MTL's shares have seen marginal growth, rising 2.5p to 515p.