THE Dungannon based engineering company Powerscreen International is on the verge of a £10 million acquisition in the United States, The Irish Times has learned.

Powerscreen, whose shares will be listed in Dublin from tomorrow has declined to comment on reports of the acquisition. However it is understood that the company is currently finalising the deal, and the purchase is expected to be announced later this month. The company being acquired is thought to be a manufacturing operation in the materials handling sector, the fastest growing segment of Powerscreen's business.

Materials handling in the construction, agricultural and chemical sectors operates on lower margins than Powerscreen's other core business areas and the company wants an American manufacturing operation to help reduce the costs of exporting to the US.

Materials handling accounted for about £78 million of Powerscreen's £196 million turnover last year, but the business operates on margins of about 7.5 per cent, compared to 14 per cent in the crushing and recycling division, and 23 per cent in the screening division.

The acquisition will be Powerscreen's fifth in the United States.

In the six months to the end of September, Powerscreen increased sales by almost 50 per cent to £121 million, while pre tax profits jumped 17 per cent to £17 million.

Meanwhile, Powerscreen shares traded at record levels in London yesterday, reaching an all time high of 409p sterling before closing at 406 1/2p.