Teknek is latest Scots firm to be snapped up by a US giant

A SCOTTISH technology company that has been at the cutting edge of the electronics industry since the 1970s was yesterday snapped up by a New York- listed rival.

Inchinnan-based Teknek - which in May revealed it was "in discussions with a third party" - has been bought by the giant Illinois Tool Works (ITW) for an undisclosed sum.

ITW, which turned over $15.9 billion (10bn) last year, made assurances that "Teknek's operations will continue unchanged".

Teknek managing director Steve Mitchell had previously been vocal in his commitment to keeping his firm in Scotland.

The Scotsman revealed in May that Teknek was in third-party talks but, at the time, a spokesman for the firm rejected one source's suggestion that the company was for sale.

The firm, whose technology is used to clean machines that make flat-screen televisions and solar panels, has about 100 staff.

Abbreviated accounts filed at Companies House showed that it grew its pre-tax profits to 513,000 in the year to 31 May, 2010 - the most-recent period for which accounts were available - from 199,000 in the previous 12 months. Turnover dipped to 8.4 million from 8.6m.

In February, Teknek - which was founded in 1978 - unveiled expansion plans in Asia, doubling its headcount in the region in order to cope with growing demand for its products.

As part of the push into emerging markets, the firm's Asia Pacific headquarters moved from Yokohama in Japan to a new office at Shanghai in China. A second Chinese site at Guangdong is also planned. At the time, the firm said it was investing in expanding capacity at its Hong Kong production facility and growing its Taiwan-based sales team. Last year the company opened its first office in the US.

Teknek was sold by its parent company, TH Group, which also owns circuit board-printer Rainbow Technology Systems.

The Scottish company will become a wholly-owned subsidiary of ITW, which was founded in 1912, and will be rolled into the American company's existing Electrostatics business, within its electronics group.

Michael Oldt, Electrostatics group general manager, said: "Teknek's strong reputation, product development and worldwide footprint compliment ITW's existing electronic and industrial businesses within the Electrostatics platform."

ITW, which employs more than 60,000 people globally, describes itself as a "diversified industrial manufacturer".

The US group said it was attracted to Teknek by its "contact cleaning technology", which was invented in 1984 and which has meant that the Scottish company "continues to lead the market".

ITW already owns 38 businesses in the UK, ranging from timber beam maker Alpine through to laminate worktop manufacturer Wilsonart UK. Teknek is believed to be the first business ITW has acquired north of the Border.Scottish firms and their technologies appear to be on the radar of several large US groups.

Last week it emerged that New York-listed Alere had made a 230m approach for Dundee-based medical testing kit maker Axis-Shield.

The offer was rejected by Axis-Shield's board, which said the figure undervalued its business. Alere is thought to be stalking the Scottish firm because of its Afinion machine, which can run simultaneous tests on the same sample, giving an advantage over rival equipment.

Last month, GlycoMar - the Oban-based marine biotechnology firm - sold VeroMara, its seafood testing business, to New York-listed Neogen for an undisclosed sum.