Avingtrans buys Texas-based Tecmag for $243k

23rd Oct 2018 11:29

(Sharecast News) - AIM-listed Avingtrans has announced the acquisition of Texas-based Tecmag for $243,000, including the assumption of debt.Based in Houston with 11 members of staff, Tecmag designs, manufactures, tests and installs instrumentation, including full consoles, system upgrades and solid-state probes, mainly for Magnetic Resonance Imaging (MRI) and Nuclear Magnetic Resonance (NMR) systems.Avingtrans said founder John Delayre will remain with the business in a consultancy capacity for a transitional period post-acquisition and then to assist with the development of new products, under a redefined strategy for the business.The acquisition will integrate Tecmag's expertise in consoles and spectrometers with that of Scientific Magnetics, which was acquired by Avingtrans in February 2017, in the area of superconducting magnets and cryogenics."The combination of these two businesses - together with the group's existing capabilities - means that Avingtrans and its partners will have the ability to produce complete MRI, or NMR systems," it said.Chief executive officer Steve McQuillan said the deal is relatively small but strategically important for the Scientific Magnetics team."It aligns with our 'pinpoint-invest-exit' (PIE) strategy in medical and industrial imaging. This transaction cements the foundations of the platform that Avingtrans is constructing, to create enhanced shareholder value by bringing together niche businesses whose individual capabilities can be enhanced by fusing them together to achieve critical mass."We are looking forward to working with the Tecmag team to deliver on potentially significant opportunities across a number of new sectors in these exciting markets."In the year ended 31 March 2018, Tecmag reported pre-tax profit of $16,000.At 1110 BST, the shares were down 0.9% to 220.61p.