Racal Acquires Techno Transfer Industries
Racal Electronics has acquired an 80 percent majority shareholding in Singapore-based Techno Transfer Industries (TTI), specialists in the manufacture and operation of remotely operated submersible vehicles (ROVs), for $14 million in cash. The acquisition, which has been supported by the directors of Techno Transfer Industries, includes the wholly-owned subsidiary Asiatic Underwater Contractors which provides ROV operation services to the offshore industry and to more than 50 percent of the drill rig-support market in South East Asia. Frank Vespa and Sam Sassoon will each retain a 10 percent shareholding in TTI and will continue as managing director and finance director, respectively. TTI becomes part of the Racal Energy Group, which includes Racal Survey and Racal Positioning Systems, providers of survey and positioning services to the offshore oil and gas industries worldwide.
David Elsbury, chief executive of the Racal Electronics Group, said, "The acquisition of Techno/Asiatic, with its modern fleet of 11 ROVs, provides us with a cost effective entry in a market which is currently worth ($146 million) per annum and is expected to increase as the pace of offshore exploration and development quickens in the second half of the decade."
