600 Group buys Spain's Kondia tools business for cut price

17th Oct 2016 07:38

(ShareCast News) - 600 Group, a distributor of machine tools and industrial laser systems, has acquired the tools business of Spain's largest manufacturer of milling machines from the administrators for €50,000.600 Group said the acquisition of Kondia would increase group earnings immediately, with the brand, intellectual property and inventory of spare parts "worth in excess of the acquisition costs" but available for a cut price after being placed in administration last year.Clausing, one of 600 Group's subsidiaries, previously sold Kondia's FV milling machines, which it will start producing immediately following the acquisition, for the last 20 years and "established it as a leading brand in North America", as in 1990 sales of Kondia machines in the US contributed $3m in revenues for the AIM-listed companyDon Haselton, divisional managing director of UK and US machine tool operations, said the acquisition was an opportunity to grow the Kondia business in North America and worldwide."This acquisition increases group earnings immediately and looking ahead, I'm very confident that our team will build the revenues further as we develop the opportunities we have identified in this business."Shares in 600 Group were down 5% to 9.50p at 0739 BST.