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MTL takes control at RTK for $7.42m

04 July, 2007

The MTL Instruments Group has paid £3.7m ($7.42m) in cash for a 90% stake in RTK, which specialises in the design and manufacture of process alarm equipment, displays and interface products.

RTK annunciator

Knaresborough-based RTK is a global supplier of alarm handling and annunciation equipment for the utilities and process control markets. It has a specific expertise in alarm-handling systems for use in hazardous and potentially flammable environments. It therefore fits well with MTL which supplies hazardous area control and instrumentation equipment.

"RTK is an excellent acquisition for MTL," says MTLís chief executive, Graeme Philp. "Over the past few years, it has developed an innovative and highly competitive range of annunciation equipment and it is expanding its international reach considerably. MTL will help to continue and accelerate that process.

"RTK also has expertise and experience in building semi-custom assemblies and sub-systems," Philp adds. "This added value activity is increasingly being requested by MTL`s customers."

Before the acquisition, the RTK Group was restructured to create a new company which acquired the business and assets of RTKís UK operation as well as a 51% stake in its US distribution company. MTL has taken a 90% stake in this new business, with the previous managing director, Tim McLeman, keeping a minority interest.

It is expected that the deal will allow RTK to increase its international customer base via MTL`s sales channels and OEM relationships. RTK will also be able to improve its competitiveness by tapping into MTL`s purchasing power.

MTL says that the acquisition will be earnings-enhancing in the first year of ownership.

This is MTLís second acquisition in recent months. In May, it bought the Australian wireless technology specialist Elpro International for AU$28.5m (£12m).




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