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Plexus to acquire a stake in sub-sea engineering specialist

In 2017, KMS generated revenues of £3.4mln (2016: £2.6mln) and profit before tax of £323,000 (2016: loss of £185,000)
Offshore oil rig
As at 31 December 2017, KMS had gross assets of £1.6mln

Plexus Holdings PLC (LON:POS) is to acquire a 49% stake in precision engineering business Kincardine Manufacturing Services (KMS) for £735,000.

KMS has a blue-chip customer base, producing a variety of parts for the oil and gas sectors, and will provide Plexus with future access to machining capability that can support research & development projects to provide potential licensees with alternative applications of Plexus’s POS-GRIP technology.

READ Plexus’s chairman believes prospects at the corporate and trading level “have never been better”

"As a highly experienced engineering company based in Aberdeenshire with a blue-chip customer base, KMS shares many similarities with Plexus,” said Ben Van Bilderbeek, the chief executive officer of Plexus.

“We already have first-rate IP [intellectual property] in the form of our POS-GRIP technology, and now thanks to today's transaction, we are further able to support our programme to expand the application of our proprietary technology throughout the oil and gas supply chain and beyond into areas such as geothermal and decommissioning. Having established our jack-up exploration well-head business as the dominant supplier to the North Sea HP/HT market, we know the challenges companies operating in the sector face. Therefore, we look forward to working with and supporting the KMS team going forward, as we look to grow our business substantially over the coming years,” he added.

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