Institutions in the Square Mile have rushed to bankroll oil and gas equipment supplier Pressure Technologies' (PRES) acquisition of Roota Engineering. No wonder. Precision engineer Roota is already highly profitable and an excellent fit with Pressure, which makes the price-tag of up to £13.5m look like great business.
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A placing at 575p to raise £16.7m, which includes £6m spending money, was heavily oversubscribed. Roota, based just two miles down the road from Pressure's own Sheffield headquarters, made a pre-tax profit of £2.6m last year on revenue of £8m, and broker Charles Stanley conservatively estimates it should enhance earnings by 16 per cent this year, 22 per cent in 2015 and 18 per cent the year after.
