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PTC Industries has entered into a deal to acquire 100% shareholding in Trac Precision Solutions, strengthening its presence in the UK aviation and defence sectors. The acquisition is subject to approval under the UK's National Security and Investment Act.
PTC Industries Ltd, a leading manufacturer of high-precision metal components, has announced its acquisition of Trac Precision Solutions Ltd (TSPL), a UK-based company specialising in precision-engineered components for aviation, defence, and power generation markets. The Share Purchase Agreement (SPA), signed on October 18, 2024, will see PTC Industries acquire 100% shareholding in TSPL, marking a significant expansion for the Indian firm into international markets.
Under the terms of the agreement, PTC Industries will acquire TSPL along with its ultimate holding company, Trac Holdings Ltd, and three non-operational entities—Broomco (4266) Ltd, Trac Group Ltd, and another step-down subsidiary. Upon completion, Trac Holdings will become a wholly-owned subsidiary of PTC Industries, strengthening the company’s foothold in the high-precision manufacturing sector. However, the acquisition is subject to approval under the UK's National Security and Investment Act 2021, a regulatory hurdle that must be cleared before the deal is finalised.
This acquisition aligns with PTC Industries’ broader strategy to diversify and grow its presence in key international markets. TSPL’s expertise in precision components for critical sectors such as aviation and defence offers a complementary addition to PTC’s existing portfolio, which includes advanced manufacturing for supercritical applications. This move will also give PTC access to cutting-edge technology and new market opportunities in Europe.
In September, PTC Industries secured a notable production order from BAE Systems for titanium castings for the M777 Howitzer, further reinforcing its credentials in the defence sector. The titanium castings, including spade trails and blades, are part of the M777 Ultra-Lightweight Howitzer system, a critical asset for military operations.
Shares of PTC Industries closed at ₹12,942.00, down by 2.16% following the announcement. While the acquisition news may have short-term impacts on the PTC Industries' share price, the long-term potential of the deal could drive future growth. The acquisition of TSPL is expected to open new revenue streams for the company in high-demand industries such as aviation and defence.
PTC Industries' acquisition of Trac Precision Solutions marks a significant step in its global expansion strategy. With the deal's completion, the company stands to gain a valuable market presence in the UK, further enhancing its role in high-precision component manufacturing for critical applications.
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