Scott Technology agrees to buy Applied Sorting Technologies for $1.3m
Scott Technology [NZX: SCT], the industrial automation firm, is to make its second acquisition this year by agreeing to buy Melbourne-based Applied Sorting Technologies (AST) for $1.3 million to gain inspection technologies with applications for the meat and mining industries.
The purchase would follow the acquisition in May of Ohio-based RobotWorx for up to US$7.7 million in cash and shares, a company that programmes and fits-out industrial robots so they can perform automated manufacturing.
AST provides Scott with "skills and expertise in advanced sensing and imaging technologies including X-ray, DEXA and CT scanning," the company said in a statement.
The purchase price includes an amount for the net tangible assets and an amount for the transfer of intangible assets, subject to earn-out over the next
18 months, Scott said, adding that the acquisition will add to earnings immediately.
In March, the Dunedin manufacturer reported a 63 percent slide in first-half profit as the strong kiwi dollar eroded export earnings and stiff competition pushed down margins.
At the time, the company said it had evaluated a number of potential acquisitions in the period, rejecting some while others remained under consideration.
Shares of Scott were unchanged at $1.55, and have dropped 18 percent this year.