Monday, February 4, 2008

Metalrax signals turnaround with US acquisition

After a disastrous 2007, Metalrax Group Plc will acquire US company Post Glover LifeLink (PGL), a manufacturer of electrical power systems.

Metalrax, a supplier of specialist steel products, will fund the $6 million (£3.03 million) acquisition through its existing debt facilities. PGL was sold by Halma, a maker of hazard detection products.

Organic growth

Andrew Richardson, chief executive, said: “The acquisition of PGL marks our first step in supplementing Metalrax’s turnaround potential and organic growth prospects.”

Last year, the company suffered from severe operational problems leading to a number of profits warnings and disappointing trading updates.

So far, five senior managers have left and six new managers have joined.
Strategic review

“...The acquisition of PGL takes the Group further into the healthcare, medical, laboratory and educational sectors where we are well placed to grow organically and through further selective acquisitions.”

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