Plexus Holdings PLC (LON:POS) is to acquire a 49% stake in precision engineering business Kincardine Manufacturing Services (KMS) for £735,000.
KMS has a blue-chip customer base, producing a variety of parts for the oil and gas sectors, and will provide Plexus with future access to machining capability that can support research & development projects to provide potential licensees with alternative applications of Plexus’s POS-GRIP technology.
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"As a highly experienced engineering company based in Aberdeenshire with a blue-chip customer base, KMS shares many similarities with Plexus,” said Ben Van Bilderbeek, the chief executive officer of Plexus.
“We already have first-rate IP [intellectual property] in the form of our POS-GRIP technology, and now thanks to today's transaction, we are further able to support our programme to expand the application of our proprietary technology throughout the oil and gas supply chain and beyond into areas such as geothermal and decommissioning. Having established our jack-up exploration well-head business as the dominant supplier to the North Sea HP/HT market, we know the challenges companies operating in the sector face. Therefore, we look forward to working with and supporting the KMS team going forward, as we look to grow our business substantially over the coming years,” he added.