MTL Instruments Group has made three acquisitions in three months with total investment of £18M in cash:

• May 07 - £12m, Australian wireless company Elpro International
• June 07 - £3m, 90% of UK based RTK Instruments (process alarms)
• July 07 - £3m, UK based Ocean Technical Systems (SCADA)

Andrew Bond, who publishes the widely respected UK newsletter, Industrial Automation Insider, makes some canny comments,

"Despite CEO Graeme Philp’s enthusiasm, there may be some who will wonder how the acquisition of a specialist SCADA system vendor fits with the previously declared strategy of becoming the leading supplier of building blocks for process automation systems and whether there is not a danger of transforming a previously tightly focused group into an increasingly diverse conglomerate of loosely related businesses."

My own view is that Graeme Philp has a shrewd eye for strategic value: good people, with key technology and growth potential, in similar business in complementary markets. He recognizes that the barriers to growth can be overcome through good acquisitions combined with the ability to motivate leaders in the acquired companies to generate growth and success as part of a larger corporate team.

Graeme has enough confidence in his own judgment, and his team, to move quickly. Plus, MTL's bankers evidently have enough confidence to provide cash.

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