Hammonds LLP advises Redhall Group plc on recommended takeover offer
22 September 2010
The Leeds office of Hammonds LLP is advising a Wakefield plc on its latest takeover which was announced to the markets today.
Redhall Group plc has announced the recommended cash offer of the entire issued and to be issued share capital of Mount Engineering Group, which is based in York, for £16.4 million.
Redhall Group plc is an AIM quoted group with a market capitalisation of approximately £40m. The well-established engineering services group serves a range of specialist markets internationally including nuclear, oil and gas, food manufacturing and defence. Under the terms of the offer Mount Engineering's shareholders will receive 70 pence in cash for each Mount Engineering share.
Mount Engineering group was established in 2007 and has three operating subsidiaries. The group is involved in the manufacture and supply of threaded adaptors and reducers, for use in potentially hazardous or explosive areas. The company also stocks and provides industrial valves and actuators.
Commenting on the offer, Redhall's Executive Chairman, David Jackson, said, "We are delighted to bring the Mount business into the Redhall Group. We believe this acquisition will deliver significant improvement in operating margin and will strengthen the Redhall Group's presence within the global oil and gas markets, furthering our ability to cross-sell the Redhall brand within our expanding client base".
Hammonds is advising its long-standing client, Redhall on the takeover. In 2008 the firm advised them on the Chieftain Group takeover. The transaction is being led by Steven Glover, who heads up the firm's corporate team in Leeds. He said, "We are delighted to have acted for Redhall again on this transaction and to have assisted in the continued development and growth of the group." Steven is being assisted by corporate associates Jo Bell and Joy Irving.
Altium is acting as sole financial adviser and corporate broker to Redhall and Charles Stanley is acting as financial adviser to Mount Engineering.
For further information contact:
Beth Reed, Communications Executive, Hammonds LLP, on 0113 284 7236 or email: