Precision Technologies Group (PTG) has sold its Holroyd and heavy machine tools businesses to Chinese machine tool maker Chongqing Machinery & Electric Company for £20 million, subject to approval by Beijing, expected in six weeks [UPDATED 19/03/10].
This does not include Jones & Shipman or Edgetek super abrasive machines, which remain with PTG, although Machinery understands discussions with other parties are underway.
The sale takes in Holroyd Precision, Precision Components, PTG Heavy Industries, Milnrow Investments, PTG Advanced Developments and PTG Deutschland. They become subsidiaries of Chongqing.
Holroyd Precision, Rochdale, Lancs, makes gear/rotor cutting machines, while Precision Components, also of Rochdale, manufactures rotors.
PTG Heavy Industries, Huddersfield, takes in the manufacture and refurbishment of Binns & Berry and Crawford Swift lathes, plus other heavy machinery.
Milnrow Investments owns the Holroyd Precision/Precision Components site in Rochdale; PTG Advanced Developments is a special projects consultancy; PTG Deutschland is sales operation. The sale affects some 150 UK employees.
Mark Franckel (pictured), past CEO and one of the shareholders of PTG, said that the new owner is keen to expand the Holroyd range of machine tools.
Chongqing Machinery & Electric Co is listed on the Hong Kong stock exchange and is active in four segments: commercial vehicle parts and components; power equipment; general machinery; CNC machine tools.
Previously state-run, the company went public in 2008, raising a reported $167.5 million. It acquired the remaining 51 per cent equity interests of both two Chinese companies, Qijiang Gear Transmission Co and Qijiang Qi-Chi Forging Co, in February.
The official HK stock exchange announcement says that this latest acquisition of Holroyd et al is a "strategic move" intended to "improve the technical know-how of Chongqing, reinforce the capability of technical development of relevant enterprises of the company, expand its business scale and enhance its profile".
[UPDATED 190310 - changed description of Mark Franckel to 'past CEO': he is not current CEO]
Author: Andrew Allcock