ABS disposes of niche engineering subsidiary
Al-Met is a specialist manufacturer of precision engineered valve wear parts for the oil and gas industries and operates from Pontyclun near Cardiff. Its products are used in high pressure choke and flow control valves designed to regulate flow volumes in extremely demanding applications in the subsea and surface oil and gas industries. ABS is a global leader in the recycling, processing and supply of high value speciality alloys. With annual sales in excess of £100m and operations in the UK, mainland Europe, South Africa, the USA and China, ABS supplies many of the world’s major metal producers.
ABS initially appointed BHP Ingram Forrest to undertake a strategic review of the group’s activities which led to the decision to focus on its core metal recycling business. Following the review ABS instructed BHP Ingram Forrest to conduct a sales process for Al-Met, including the identification of suitable prospective purchasers.
The deal sees AIM listed Pressure Technologies acquire Al-Met for a maximum consideration of £2.25m. Stephen Ingram, who together with Kevin Davies led the transaction commented, “Al-Met was a non-core subsidiary of ABS. It is a very good quality business with specialised engineering skills and I believe that it will be a very good fit for Pressure Technologies.” He added, “this transaction provides further confirmation of our ability at BHP Ingram Forrest to identify quality acquirors for niche and specialist businesses and then to proceed to successful completion.”