Material Advantage Group, the Sheffield-based engineering firm, said yesterday it had expanded its opera-tion with the acquisition of West Lothian company Nexus Precision Engineering.

Material Advantage Group, the Sheffield-based engineering firm, said yesterday it had expanded its opera-tion with the acquisition of West Lothian company Nexus Precision Engineering.

MAG said the deal extends its supply chain offering and gives access to new customer accounts and a strong manage- ment team, which will help it achieve ambitious global development plans. MAG would not disclose how much it paid for Nexus.

Based in Broxburn, West Lothian, Nexus is a precision machining business and provides final finishing of metal components to the oil and gas industry. It employs nearly 20 workers.

MAG specialises in supplying machined and semi-finished metal components to both the downhole and wellhead oil and gas markets. The acquisition is the company's first since a £57m management buy-out in 2007.

The deal, which was backed by Baird Capital partners and Yorkshire Bank, saw the business change its name from ESS Steel Holdings to MAG.

Philip Kirkham, chief executive of MAG, said: "The acquisition of Nexus is a complementary strategic fit for MAG. It enables us to deliver a wider supply chain solution, which will benefit customers of both companies."

The due diligence support was provided by Andrew Ryder, Patrick Abel and Helen Milnes from accountancy and business advisors PKF.

Ryder, corporate finance director at PKF, said: "Despite the current tough economic conditions, this deal is evidence that there are still opportunities in the right market places for companies to develop and grow."