The 600 Group has bought 80% of the shares of a US-based laser marking business for £3.04 million.

The Heckmondwike-based machine tool manufacturer says that the deal with TYKMA will be financed by an issue of loan notes that will also be used to re-pay existing debt and give the group additional working capital.

The first tranche of loan notes will raise an aggregate of £6.739 million, with up to an additional £1.761 million to be raised in the future.

Ohio-based TYKMA specialises in the design and production of laser marking systems used for traceability, branding and component identification on metals, carbide, painted or anodised materials, most plastics and many other substrates.

These have been incorporated into the production processes of a wide variety of US industrial companies in the electronics, medical, tooling and automotive sectors.

For the year to 31 December, TYKMA reported a profit of $73,000, on revenues of $8.4 million. The management team will retain 20% of the shares in the company, and they will retain their full-time management positions. The company will be integrated with Electrox, the 600 Group’s existing laser business.

Group CEO Nigel Rogers said: “We are delighted to announce this strategic investment in the product-identification industry segment.

"The combination of Electrox and TYKMA will enable us to build a leading position in this fast-developing market-place, based on shared values of outstanding customer service, excellent product technology, unrivalled professionalism in sales and distribution and depth of engineering expertise.”