Redhall enters sales negotiations with rival engineering firm
Redhall makes £16.4m bid for Mount Engineering
UK engineering support services firm Redhall has entered sales negotiations with rival firm Mount Engineering.
Redhall has made a cash offer of around £16.4 million for Mount as it looks to expand its operations into the international energy sector.
The offer price of 70 pence per share represents a 26 per cent premium on the value of Mount's stock at the end of trading on Tuesday.
David Jackson, executive chairman of Redhall, expressed his delight at the prospect of bringing Mount into the Redhall Group.
He said: "We believe this acquisition will deliver significant improvement in operating margin and will strengthen the Redhall Group's presence within the global oil and gas markets, furthering our ability to cross-sell the Redhall brand within our expanding client base."
Mount has a presence in a number of different market including Europe, US, Asia and the Middle East. It reported a turnover of £9.3 million last year.