The Group has announced the c. £5m acquisition of certain assets of Slack & Parr Limited (‘S&PL’) from administration, together with S&PL’s overseas subsidiaries. S&PL, a well-invested family owned business, is a leading manufacturer of custom precision gear pump solutions with a global footprint and a large installed base. The acquisition is an excellent fit with the Group and can be expected to generate strong shareholder returns under the experienced direction of the Avingtrans team. The Group has also confirmed that its offer to acquire Adaptix, which has been accepted by the majority of its shareholders, is now expected to complete by the early part of September subject to the receipt of regulatory approval. We see both developments as positive and will update forecasts in due course. We re-iterate our BUY and 510p target price.
