The group has announced an acquisition of a US-based precision tooling and injection moulding business, selling into the medical device sector, for $6.5m, accompanied by the announced proposed placing to raise £8.0m. We think the acquisition looks a decent fit and provides good customer and geographic extension to existing operations. The net effect of the acquisition and placing is broadly EPS neutral. The shares trade on a P/E of 11.3x followed by 10.0x. We maintain our Hold rating. ....
