Kiwi firm takes over RobotWorx
South Island manufacturer Scott Technology is beefing up its United States presence with a US$5.4 million (NZ$6.26m)-plus purchase of industrial robot business RobotWorx.
Scott, an automated production systems maker, will close its Dallas office and move some staff to Marion, Ohio, where the RobotWorx operation is based.
The initial consideration of US$5.4m will be funded by US$4.5m of bank debt and the issue of 646,301 shares in Scott to the vendor. An additional 1,648,068 shares in Scott, representing a further US$2.3m, will be issued and held under an escrow arrangement and will pass to the vendor over three years if earnings targets of the RobotWorx business are achieved.
The shares have been issued at NZ$1.6157 a share, the volume weighted average price for the five days before settlement.
Scott specialises in the design and manufacture of automated production systems for mining, meat and superconductor industries.
Scott shares yesterday afternoon were trading 2 cents higher at NZ$1.82 following the announcement.
RobotWorx is an Ohio industrial robot integrator offering new and used robotic systems for sale.