Rapid automated welding systems manufacturer K-TIG has expanded its interests in the United Kingdom nuclear decommissioning sector, acquiring UK advanced manufacturer Graham Engineering Limited (GEL).
The GBP18 million purchase gives K-TIG, which is vying for contracts to manufacture containers to house nuclear wastes, an in country manufacturing presence – GEL already produces highly engineered, large scale metal fabrications for the sector.
GEL has developed a range of innovative manufacturing processes with applications in nuclear, aerospace, security and medical industries.
Its existing customers include Sellafield Limited, UK Atomic Energy Authority, Magnox, Dounreay, Rolls Royce, Rapiscan Systems and Siemens.
GEL reported FY22 EBITDA of GBP1.3 million on revenue of GBP13.5 million.
K-TIG will fund the acquisition through an interim capital raise via a convertible note of $2 million and a further raise of $20 million.
Its shares were suspended from trading this morning on the ASX at the company’s request.
K-TIG’s rapid welding systems have made inroads into the pipe welding and other sectors, with the company also positioning to take part in a massive programme in the UK of storing wastes from outdated UK power reactors and other facilities.
The new purchase brings with it capabilities in supplying stainless steel and exotic metal components to aerospace engine manufacturers, and pressure vessels and precision components to medical manufacturers.