Spectris buys US-based Revolutionary Engineering for $19m

Spectris, a supplier of productivity-enhancing instrumentation and controls, has acquired US-based automotive test system and service provider, Revolutionary Engineering, for $19m.

Revolutionary Engineering, which has a presence in China and Germany, specialises in driveline test services and solutions and is a recognised leader in the testing of e-motors and hybrid drivelines, in particular.

Spectris said the acquisition complements the existing test capabilities of Millbrook and will be rebranded as Millbrook Revolutionary Engineering. It said the deal is an "important step" in Millbrook's strategy to extend its reach into new geographies and further expands its capacity and capabilities in testing propulsion systems, including the testing of batteries, inverters and e-motors.

Business group director Eoghan O'Lionaird said: "Revolutionary Engineering provides high-quality testing services and expertise and is highly complementary to the services offered by Millbrook. This acquisition broadens Millbrook's automotive testing services offering and establishes a presence in the important US market where the demand for driveline testing and test systems is growing strongly."

Shore Capital said the strategic rationale of the deal is "immediately apparent" as it will address the company's lack of US presence and reliance on combustion engine testing.

At 0807 BST, the shares were down 1.2% to 2,661p.