Oxford Instruments makes US purchase

Oxford Instruments, the hi-tech tool manufacturer, is paying $18m for the US medical firm Platinum Medical Imaging.

The deal includes a deferred payment of up to $37m over the next three years dependent on performance.

Platinum specialises in MRI and CT scanning components and services. Ithas 33 staff across two sites in Florida and California who sell parts, carry out repairs and do system rebuilds. Earnings were £2.3m in 2010 on revenues of $14.1m.

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Oxford Instruments says it believes there is a "growing opportunity" in the third party service market as the US healthcare system tightens its belt following the Obama reforms.

Commenting on the acquisition, Jonathan Flint, Chief Executive of Oxford Instruments, stated:

"This acquisition, which is the first within our Service Sector, is consistent with our 14 Cubed objectives to target 14% compound annual revenue growth and return on sales of 14% by 2014. MRI service is the cornerstone of our Service sector and with Platinum, our position is substantially strengthened in the US market."

After an initial rise, shares were down 0.24% at 823p by 11:35 on Friday morning.

BS