MBH Corporation Plc (FRA:M8H) has agreed its first acquisition of 2021 with a deal that created a new engineering vertical for the group.
Having made 12 purchases last year to take the portfolio of companies in the mini-conglomerate to 22, the group has struck a deal to buy 3Ks Engineering.
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Based in Llanelli, South Wales, 3Ks carries out a dual role of large fabrication alongside heavy machining, with customers largely centred around the oil & gas market.
MBH is paying £3.3mln in bonds to acquire 100% of the company from its family owners, with the founder’s sons Kevin and Karl Hanbury, who have been running the business, staying in their posts post acquisition.
For the year ending January 31, 2020, 3Ks generated £4mln of revenue and MBH said it expected it to be an EPS-accretive acquisition.
Callum Laing, the chief executive of MBH Corporation, said: “This is a fascinating new vertical for our group and 3Ks represents the best of the engineering sector with talented leadership who inspire huge loyalty from their people. They deliver consistent quality in a highly complex field and we're delighted to welcome them and their team to the MBH Group.”