Component manufacturers Specialist Heat Exchangers and Tube Fins, has been acquired by an Italian sub assembly manufacturer as part of a £9m takeover. Bank of Scotland Corporate has provided £5.1million of funding, with a further £0.5 million provided by way of working capital facility.

The Italy-based Raco Group acquired the Lincoln and Tamworth based businesses, which are part of the holding company Cooling Power Holdings. One of the Group's key aims is to use the businesses' strong position in the US marketplace to build its own portfolio of customers across North America. In return, Cooling Power Holdings will be able to take advantage of Raco Group"s existing customer network which is located throughout Europe.