UK Lift Parts Firm Dewhurst Takes Step To Buy Out US Peers

30th Jun 2010 11:12

LONDON (Dow Jones)--Lift component maker Dewhurst PLC (DWHT.LN) said Wednesday that it had taken the first steps toward the acquisition of a pair of Los Angeles-based companies, a move that may sharply lift its revenues from North America close to that of its main market in the U.K. The London-headquartered AIM-listed firm has paid $1 million to acquire a 25% stake in Elevator Research and Manufacturing Corp. and 41.67% of Winter and Bain Manufacturing Co. from their respective owners and managers, with an eye to buying up the remaining shares by 2014. Currently, the firms are under common ownership. Last year, Dewhurst had revenue of GBP35.8 million, with around a fifth of that, or GBP8.5 million, coming from the Americas. In 2008, Elevator Research and Manufacturing made a pretax profit of $0.45 million on revenue of $4.93 million. Winter and Bain made pretax profit of some $0.2 million on revenue of $4.7 million. Dewhurst's biggest market - it makes buttons for lifts and cashpoint machine, among other parts - is the U.K., from where more than a third of its revenues, or some GBP14 million, derive. "Adding these businesses to the Dewhurst group should enable us to grow our market share in the important U.S. market," Richard Dewhurst, chairman of the eponymous company, said. Elevator Research and Manufacturing already distributes Dewhurst's product in the region and the stake purchase is intended to secure those sales. Winter and Bain will, it is hoped, open up new avenues for sales of the British firm's products. - By Sienna Smallman, Dow Jones Newswires; +44 20 7842 9343; [email protected] -0- (MORE TO FOLLOW) Dow Jones Newswires June 30, 2010 06:12 ET (10:12 GMT)