MTL acquires 90% of RTK Instruments for GBP3.7M

The MTL Instruments Group has acquired a 90% stake in RTK, the leading specialist in the design and manufacture of process alarm equipment, displays and interface products for GBP3.7m in cash

Immediately prior to the acquisition, the RTK Group was restructured with a new company being set up which acquired the business and assets of the UK RTK company, as well as a 51% stake in the RTK US distribution company.

MTL has taken a 90% interest in this new entity and the minority interest remains with the previous managing director, Tim McLeman.

RTK has established a strong position as an international provider of alarm handling and annunciation equipment for the utility and process control markets.

RTK has specific expertise in the application of alarm handling apparatus in hazardous and potential flammable environments and is, therefore, a natural fit for MTL, who have a world leading position in the provision of hazardous area control and instrumentation equipment.

Following the transaction, it is expected that the RTK business will be able to extend its international customer base by leveraging MTL sales channels and OEM relationships.

RTK will also have an opportunity to improve its competitiveness by utilising the MTL purchasing power.

The directors believe that the acquisition will be earnings enhancing in the first year of ownership.

Graeme Philp, MTL Chief Executive, commented; "RTK is an excellent acquisition for MTL.

Over the last few years it has developed an innovative and highly competitive range of annunciation equipment and it is expanding its international reach considerably.

MTL will help to continue and accelerate that process.

RTK also has expertise and experience in building semi-custom assemblies and sub-systems.

This added value activity is increasingly being requested by MTL customers".

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