Pressure Technologies acquires Roota
05 March 2014
Sheffield-headquartered Pressure Technologies has acquired Rotherham-based manufacturer Roota for £13.5m.
Roota, an established manufacturer of engineered products for the oil and gas industries, is a privately owned business which makes components for high added value ball valves, mandrels, connectors and well-heading cleaning tools.
Pressure Technologies said Roota's niche lies in the production of highly complex products, with a specialism in machining exotic alloys to exacting tolerances.
Roota, which has manufacturing facilities located close to Pressure Technologies' existing cylinder business, is expected to dovetail with Pressure Technologies' subsidiary Al-Met, as the business serves the same oil and gas market and produces similar, albeit larger and more complex products.
Roota has 35 employees and upon completion of the acquisition the key members of Roota's management, Matthew Crampin and Nicholas Crampin, will remain with the enlarged business, retaining their long standing roles as managing director and production manager respectively.
For the year to 30 November 2013, Roota reported revenues of £8m and pre-tax profit of £2.6m.
John Hayward, chief executive of Pressure Technologies said: "Roota is an ideal acquisition for Pressure Technologies and the support and enthusiasm of both existing and new investors for the deal are testament to this. Roota is profitable, operates in markets we know well and we believe the acquisition will be earnings enhancing.
"In addition, the business is located just two miles from the group's head office, making it ideally located for a seamless integration with the enlarged group."