The MTL Instruments Group plc announced on May 17 that it has acquired 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 U.S.$23.5 million includes repayment of bank and shareholder loans of about $U.S.$1.2 million and U.S.$900,000 respectively.
MTL is a Luton, England-based provider of intrinsic safety explosion protection devices, fieldbus technology and surge protection products. Elpro is a global provider of secure and reliable wireless solutions for applications in the process control, manufacturing and utility markets.
“We are delighted to have been able to acquire Elpro. Wireless Technology is forming an increasingly important part of the signal and data communication layer on modern process plants. MTL is already a leading supplier of components for this communication layer and now, with the addition of Elpro, we can provide interconnect solutions using all major technologies, including traditional analog, Foundation Fieldbus, Industrial Ethernet, optical and wireless,” said MTL Chief Executive Graeme Philp. “This acquisition positions MTL well for continued growth and success in this important area.”
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 original equipment manufacturer (OEM) relationships. The combination 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 June 30, 2006, Elpro achieved a pre-tax profit of about U.S.$985,000 on sales of U.S.$6.7 million.
Elpro International PTY Ltd
www.elprotech.com
MTL Instruments Group plc
www.mtl-inst.com
