Precision Machined Components Division of Pressure Technologies PLC acquired in cross-border deal

Pressure Technologies plc, the specialist engineering group listed on AIM and based in Sheffield, has sold PT Precision Machined Components Limited (“PMC” or “the Division”) to Raghu Vamsi Machine Tools Private Limited (“RVMT”), a manufacturer of precision engineered components based in India. PMC manufactures highly specialised components for use in safety-critical subsea and surface flow control applications, serving global oil and gas OEM customers through its Al-Met, Roota Engineering and Martract operations in the UK.

PMC was identified as non-core by the Board of Pressure Technologies plc, with a shift in strategic focus to the development and growth of the Group’s principal division, Chesterfield Special Cylinders (“CSC”), a market leading designer, manufacturer and provider of safety-critical, high-pressure containment products and services to a global customer base in the defence, hydrogen energy, oil & gas and industrial markets.

RVMT is part of the Raghu Vamsi Group.  Founded in 2004, the company and its subsidiaries design, develop and manufacture precision engineering components and subassemblies for global customers in aerospace, defence, oil & gas, medical and industrial markets. RVMT’s capabilities include CNC machining, engineering, sheet metal fabrication, composites manufacturing, electronics and electromechanical subassemblies, welding and specialised surface coatings. Through its operations in India and the United States of America, RVMT exports and supplies to various global OEMs including Halliburton, Baker Hughes, Schlumberger, Boeing, GE Aviation, Honeywell, Rolls Royce, Collins Aerospace and many more.

Chris Walters, Chief Executive of Pressure Technologies plc, commented: “We are delighted to announce the sale of PMC to Raghu Vamsi Machine Tools and look forward to seeing the continued progress of the business under its new ownership, where plans for strategic development and growth present exciting opportunities for the combined businesses, their global customers and their employees.

The completion of this strategic divestment will allow us to focus our resources on the development and growth of Chesterfield Special Cylinders in defence and hydrogen energy markets and in the provision of through-life inspection, testing and recertification services over the medium and longer term”.

Vamsi Vikas Ganesula, Managing Director of Raghu Vamsi Machine Tools, added: “We are delighted with the strategic acquisition of the PMC business from Pressure Technologies.  The respected brands of Al-Met, Roota Engineering and Martract will complement our existing engineering businesses and deliver strong operational and commercial synergies as we continue to expand our international footprint.

We are very excited by the opportunities presented in the global oil and gas market with the blue-chip customer base of PMC and will now work closely with our new colleagues in the UK to develop the long-term manufacturing capability and reach of our combined businesses”.

The Board of Pressure Technologies plc was advised by Dow Schofield Watts Yorkshire & North East Corporate Finance team, which comprised Roger Esler, Paul Herriott, Matt Spence, Mike Barker, and Harry Martin. Legal advice was provided by Addleshaw Goddard LLP, and tax advice by PWC UK. RVMT was advised by Shoosmiths (legal) and BDO India (financial).

Roger Esler, Corporate Finance Partner at Dow Schofield Watts, shared: “This cross-border, UK to India deal has been an important strategic transaction for both parties and we are pleased that Raghu Vamsi Machine Tools will bring further growth, development and new opportunities for PMC and all the employees of its constituent businesses”.