Acal has acquired German manufacturer MTC Micro Tech Components for an upfront cash consideration of €2.4m (£2.1m) before expenses.
“The acquisition of MTC is a further step in the implementation of our specialisation strategy," said Nick Jefferies, group chief executive of Acal.
"A combination of specialist acquisitions and a move towards more highly differentiated specialist products is driving higher margins which we anticipate will lead to increased profitability in the first half in line with our expectations," said Jefferies.
MTC manufactures and supplies electromagnetic shielding products to the European and Asian industrial electronic markets.
Based in Germany, with a manufacturing operation in South Korea, MTC employs 20 staff. The company will form a separate business unit within Acal’s Electronics division.
"Operating in a rapidly growing niche, they bring a strong range of own brand electromagnetic shielding products into the group, which we plan to sell throughout Acal's European organisation," said Jefferies.
"With a strong balance sheet and in excess of £30m of banking facilities, the Group is well positioned to deal with changes in demand as a result of the uncertain economic conditions, as well as opportunities that may arise," added Jefferies.
MTC has been acquired from Mr G Bächer. The deal also includes affiliate company EMC Innovation.
MTC’s revenues for the year ended 31 December 2010 were €2.9m (£2.5m) and it generated a pre tax profit of €0.5m (£0.4m).