An engineering company in Peterborough is to get a £1 million investment from its new owners.
The cash will be ploughed into Peter Brotherhood, which was bought by Luton-based engineering company Hayward Tyler just a few weeks ago.
We remain excited at the opportunity ahead in respect of the Peter Brotherhood business.Ewan Lloyd-Baker, chief executive
The money is part of £8.4 million that has been raised by Hayward Tyler through a shares issue.
The company issued 9.3 million shares at 90 pence per share and said the issue was oversubscribed.
But details of exactly how the money will be spent at Peter Brotherhood, which employs 145 people at its factory in Papyrus Road, Werrington, have not been released.
A company spokesman said: “The money will be used as part of ongoing investment by Hayward Tyler into the business following its recent acquisition.”
A statement released by Hayward Tyler to the London Stock Exchange says the proposed investment in the Papyrus Road site will also help make the premises more attractive to potential buyers if directors agree to go ahead with a planned sale and leaseback of the land and buildings.
The £10 million purchase of Peter Brotherhood from the America-based Dresser-Rand earlier this month saw the restoration of the 148-year-old Peter Brotherhood name to Peterborough after an absence of eight years.
Chief executive Ewan Lloyd-Baker said: “We are delighted with the result of this oversubscribed fund raising and would like to take the opportunity to welcome new investors in the company as well as thank our existing investors for their continued support.
“We believe that the proceeds of the placing will put the company in a strong position going forward and we remain excited at the opportunity ahead in respect of the Peter Brotherhood business.
He added: “We look forward to keeping our shareholders updated as to our next level of growth across the global energy sector whilst further cementing our position in the power, civil nuclear, oil and gas and speciality chemical markets.”
The company says that £5 million of money raised from the shares issue will be used to repay a bridging loan for the Peter Brotherhood acquisition.
A further £1.5 million will be spent on works to the company’s Luton Centre of Excellence.