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(Sharecast News) - Amcomri Group announced on Tuesday that it has acquired EMC Elite Engineering Services, a specialist provider of mechanical and electrical engineering services to the power generation, process and aggregate industries, in a deal aligned with its strategy of expanding its industrial engineering platform.
The AIM-traded firm said the initial consideration of 2.5m was paid in cash, with deferred and earn-out components potentially increasing the total consideration over the next three years.
EMC generated 5.7m in revenue and 0.9m in pre-tax profit for the year ended 31 August 2024, and had net assets of 1.6m at period end.
The company said it had built a strong reputation over the past decade for delivering high-quality maintenance and project services, supported by a skilled workforce and experienced management team.
Amcomri said EMC would bring valuable expertise in the maintenance and overhaul of large rotating equipment, including multi-stage pumps and turbo-alternators, and also enhance its capabilities in low and medium voltage electrical systems.
The acquisition would bolster Amcomri's embedded engineering division, the board said, as well as complement existing operations such as WJ Project Services, particularly as the group targeted opportunities in renewable energy technologies.
Amcomri said EMC would continue operating under existing leadership, adding that it saw opportunities to expand EMC's service offering into adjacent markets, increase its geographic footprint and deliver synergies across the group.
"We are delighted to confirm EMC as our first acquisition since admission to AIM in December last year," said co-founder and chief executive officer Hugh Whitcomb.
"We have an ambitious organic and acquisitive growth strategy, and we are very pleased to welcome David Lewis, Jamie Herbert, and all of the EMC team to the group, as we continue to roll out our proven 'buy, improve, build' model."
Whitcomb said EMC had an "outstanding" team and reputation, which Amcomri believed would "significantly enhance" its embedded engineering capability and technical service offering going forward.
"2025 has started well across the group and I look forward to providing a trading update for the financial year ended 31 December, and the commencement of the current financial year, next month."
At 0905 GMT, shares in Amcomri Group were up 1.65% at 55.4p.
Reporting by Josh White for Sharecast.com.