Scott Technology may raise capital after 3rd purchase in 18 months
Scott Technology has bought Australian business Machinery Automation and Robotics for A$13m
Scott Technology [NZX: SCT], the industrial automation firm, has bought Australian business Machinery Automation and Robotics for A$13 million via bank debt, and said it raise new capital to reduce borrowings.
The Dunedin-based company will fund the purchase of the industrial automation firm through bank borrowings with MAR expected to add to earnings from day one, it said in a statement. This is Scott Technology's third acquisition in 18 months, after buying Melbourne-based Applied Sorting Technologies (AST) for $1.3 million and Ohio-based RobotWorx for up to US$7.7 million in cash and shares, as it looks to expand its presence in Australia and the US.
"This is a key development and fulfils our strategic expansion through a stronger presence in our international markets and our strategy to move up the value chain by providing smarter, interconnected robotics and automation," the company said in a statement. "The purchase would initially be funded by bank borrowings and the board will consider a capital raising in 2015 to reduce the company's borrowings following this proposed acquisition and the recent acquisition of RobotWorx in the USA."
In October the company said annual profit fell to $3 million in the 12 months ended Aug. 31, from $5.1 million a year earlier after revenue was largely flat at $60.3 million.
The shares were unchanged at $1.55 and have fallen 18 percent since the start of the year.
(BusinessDesk)
Suze Metherell
Thu, 04 Dec 2014
Thu, 04 Dec 2014
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Scott Technology may raise capital after 3rd purchase in 18 months
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