SYDNEY, AUSTRALIA: K-TIG Limited has entered into a binding agreement to acquire 100% of Graham Engineering Limited (GEL). In connection with the acquisition, the company intends to raise $20 million at an issue price of $0.20 per fully paid ordinary share pursuant to a public offer.
K-TIG will pay up to £18 million in consideration for the acquisition, consisting of an upfront cash payment of £10 million payable on completion; cash payment for the Freehold Property (assumed at £5.0 million) payable on completion; and a deferred cash payment of up to £3.0 million to be calculated based GEL’s EBITDA for FY2023, being the financial year ending 31 August 2023.
On completion of the acquisition, Graham Engineering Limited (GEL) will become a wholly owned subsidiary of K-TIG, and the company’s main undertaking will be specialist manufacturing in the nuclear decommissioning industry.
Graham Engineering Limited delivers high integrity manufacturing solutions to a wide variety of market sectors including Nuclear, Aerospace, Medical and Security.
The engineering, manufacturing and assembly relating to these products and solutions takes place at GEL’s premises in Lancashire, UK, conveniently located for GEL’s core customers.
GEL has continuously invested heavily in the latest manufacturing technology which has resulted in high-tech manufacturing capabilities backed by decades of engineering experience, efficient manufacturing techniques and comprehensive knowledge of materials.
K-TIG is a transformative, industry disrupting welding technology that seeks to change the economics of fabrication.
K-TIG’s high speed precision technology welds up to 100 times faster than traditional TIG welding, achieving full penetration in a single pass in materials up to 16mm in thickness and typically operates at twice the speed of plasma welding.
K-TIG works across a wide range of applications and is particularly well suited to corrosion resistant materials such as stainless steel, nickel alloys, titanium alloys and most exotic materials. It easily handles longitudinal and circumferential welds on pipes, spooling, vessels, tanks and other materials in a single pass.
Originally developed by the CSIRO, K-TIG owns all rights, title and interest in and to the proprietary and patented technology and has been awarded Australian Industrial Product of the Year and the DTC Defence Industry Award.