MANUFACTURER Mechan Controls has bought a Yorkshire calibration and certification firm in a deal that could be worth £1.3m.
Skelmersdale-based Mechan, which makes electronic safety switches that are used in locations from food factories to the London Eye, has bought PJO Group and its subsidiary PJO Industrial for an initial fee of £830,000. Mechan says it will pay another £500,000 if profits in either 2012 or 2013 reach agreed targets.
PJO offers calibration, testing and repair services to utility companies and supplies mining equipment. In 2010, PJO Industrial had a turnover of £1.4m and unadjusted pre-tax profits of £93,000.
For the nine months to September 30, unaudited figures show it had a turnover of £1.2m and an unadjusted pre-tax profit of £101,000.
Mechan said: “The purchase has been funded by new and existing group banking facilities. These facilities include provision for payment of the contingent payment in the event it becomes due.”
