Eleco plc, a building systems and construction software developer, has bought Milbury Systems, a producer of pre-cast and pre-stressed concrete products.

The deal is worth some £6 million, comprising almost £3 million in cash funded from its existing resources with the balance satisfied in three million ordinary shares at 101p.

The terms of the agreement includes a £75,000 deferred payment, which is conditional on the financial performance of the acquired business in the year to January 2008.

Eleco also paid some £1 million for Milbury’s freehold manufacturing site in Lydney,
Gloucestershire.

The deal expands Eleco’s Bell & Webster Concrete subsidiary. It also extends its geographic coverage and will enable it to target new markets such as pre-stressed concrete sector.

Milbury’s managing director and co-founder Robert Honey remains with the business for six months as a consultant.

Eleco was advised by Collins Stewart.

Milbury provides products to help prevent floods as well as storage tanks for the water and waste management industries. It also supplies products to build underground car parks and fire walls.

The company, which was established in 1978 and is headquartered in Tickenham near Bristol, reported a £6.8 million turnover with EBIT of £900,000 in the nine months to October 2007.