A Somerset components manufacturer has acquired a Welsh technology business with one of the largest diamond-turning facilities in Europe.
AIM-listed Gooch & Housego (G&H) said the £6.75m deal for Denbighshire-based Phoenix Optical Technologies would extend its capabilities in the aerospace and defence markets in the UK and Europe.
The North Wales company produces tech used in applications including radar, lasers, night vision equipment and telescopes. The firm has on-site capabilities for the moulding and annealing of glass and supplies sectors including defence, space and research from its base in St. Asaph.
Under the terms of the deal, ownership of Phoenix will transfer to Ilminister-headquartered G&H, which has offices around the world including in Plymouth and Torquay in the UK.
G&H has paid an initial cash consideration of £3.4m for the Welsh business, funded from existing resources. A further £3.35m will be payable based on Phoenix’s performance in the three years ending June 30, 2027.
Charlie Peppiatt, chief executive of G&H, said: “I am delighted to welcome Phoenix to the G&H Group. Phoenix is a highly capable, well-regarded UK precision optics supplier with a strong portfolio of products and services.
“Together we will be able to better serve our customers’ most complex optical systems requirements. The combination of the Phoenix and G&H teams brings together industry leading technology and know-how with efficient scalable operations that will support G&H to deliver an exceptional customer experience and accelerate our journey towards sustainable margin growth.”
Tony Palframan, founder and chief executive at Phoenix Optical Technologies, said: “We are excited to join forces with G&H, a company that shares our commitment to precision, quality, and innovation.
“By combining our expertise with G&H’s global scale and reach, we see tremendous opportunities to further develop our offerings and bring even more value to our customers.”
FRP’s Manchester-based corporate finance team advised Phoenix on the deal. FRP’s team was led by partner Adrian Gare, director Alex Starling, and manager Amy Murphy.
Mr Gare added: “Phoenix and G&H are a great strategic fit and this deal will work to leverage their respective strengths for the benefit of both businesses.”