Amcomri Group (AIM:AMCO) has added another specialist business to its growing portfolio, acquiring EMC Elite Engineering Services for an initial £2.5 million in cash.
The deal, which includes £1.5 million in deferred payments and a performance-based earn-out, is aimed at strengthening Amcomri’s capabilities in mechanical and electrical engineering across the power generation, process and aggregate industries.
EMC, which generated £5.7 million in revenue and £900,000 in pre-tax profit last year, has built a strong reputation over the past decade for high-quality maintenance and project services.
The company operates in sectors where demand is underpinned by regulatory requirements and the need for scheduled maintenance and upgrades - factors that support recurring revenue.
Amcomri, which focuses on engineering services and industrial manufacturing, said the deal fits neatly into its strategy of acquiring and scaling sector specialists.
EMC brings expertise in maintaining large rotating equipment like multi-stage pumps and turbo-alternators and also works with low- and medium-voltage systems, including renewable energy storage.
Amcomri CEO Hugh Whitcomb said the deal was part of the company's 'buy, improve, build' strategy.
"EMC has an outstanding team and reputation, which we believe will significantly enhance our embedded engineering capability and technical service offering going forward," he added.