- Welding specialist K-TIG (KTG) enters a binding agreement to acquire UK-based Graham Engineering (GEL) in a $17.6 million deal
- Graham Engineering manufactures large-scale metal fabricators for use in the UK nuclear decommissioning sector
- Upon completion of the acquisition, GEL will become a wholly-owned subsidiary of KTG
- KTG will raise $20 million to fund the acquisition and conduct a $2 million interim capital raise by way of convertible note
- K-Tig shares entered a voluntary suspension on Friday morning but last traded at 14 cents on Wednesday, January 23
Welding specialist K-TIG (KTG) has entered into a binding agreement to acquire UK-based Graham Engineering (GEL) in a $17.6 million deal.
Graham Engineering is a specialist advanced manufacturer of large-scale metal fabricators for use in the UK nuclear decommissioning sector.
Over time, GEL has developed a number of innovative manufacturing processes used in the nuclear, aerospace, security and medical sectors.
K-TIG confirmed once agreement conditions were met, and upon completion of the acquisition, GEL would become a wholly-owned subsidiary of the company, prioritising its focus on the nuclear decommissioning industry.
GEL’s clients in the nuclear sector include Sellafield, UK Atomic Energy Authority, Magnox, Dounreay, Rolls Royce, Rapiscan Systems and Siemens.
K-Tig said GEL had experience producing ‘nuclear product’ and ‘hazardous waste’ containers for the nuclear industry. Further, GEL’s offerings include high-level waste flasks, intermediate-level four-metre cubed and three-metre cubed boxes, three-metre cubed drums, 500-litre drums, low-level boxes and store furniture.
GEL reported revenue of £13.5 million (A$23.6 million) and earnings before interest, taxes, depreciation and amortisation (EBITDA) of £1.3 million (A$2.3 million) over FY2022.
K-TIG confirmed the acquisition would be funded via a capital raise of up to $20 million at an issue price of 20 cents per fully-paid ordinary share. The company will also complete an interim capital raise of $2 million through the issue of 2000 convertible notes valued at $1000 each.
KTG shares entered a voluntary suspension on Friday morning but last traded at 14 cents on Wednesday, January 23.