TIDMSDI
RNS Number : 3436U
SDI Group PLC
01 August 2022
SDI Group plc
("SDI", "SDI Group", the "Company" or the "Group")
(AIM: SDI)
Acquisition of LTE Scientific Limited
SDI Group plc, the AIM quoted Group focused on the design and
manufacture of scientific and technology products for use in
digital imaging and sensing and control applications, is pleased to
announce the acquisition on 29 July 2022 of LTE Scientific Limited
("LTE Scientific"), a UK manufacturer of sterilizers and
decontamination equipment (the "Acquisition"). Total consideration
is forecast to be approximately GBP4.2 million, net of excess cash
acquired.
Highlights:
-- LTE Scientific is a leading UK manufacturer of autoclave
sterilizers, which sterilize objects placed in a pressure vessel by
injecting steam under pressure at temperatures ranging typically
from 105˚C to 137˚C. These are used in laboratories and
hospitals.
-- Other manufactured products include environmental rooms and
chambers, endoscope storage cabinets, laboratory ovens, incubators
and drying cabinets.
-- LTE Scientific operates from a 44,000 square foot
company-owned property in the village of Greenfield in the
Saddleworth area of Greater Manchester, and has approximately 70
employees.
-- Revenues for the year ended 31 December 2021 were GBP6.4m,
with EBIT of GBP0.4 million.
-- Acquisition price includes c. GBP1.65m of freehold property.
-- LTE Scientific will reside in the Company's Sensors and Controls division.
-- Acquisition expected to be enhancing in the current year.
Ken Ford, Chairman of SDI said: "The acquisition of LTE is a
further step in our Group growth strategy, demonstrating again the
opportunities to acquire businesses with high quality products
related to our existing portfolio of equipment used in laboratories
and hospitals. The Acquisition is expected to be earnings enhancing
in current year FY2023. We are delighted to welcome John Lees and
his staff at LTE Scientific to the SDI Group."
FURTHER INFORMATION ON THE ACQUISITION IS SET OUT BELOW
Enquiries
SDI Group plc 01223 320480
Ken Ford, Chairman
Mike Creedon, CEO
Jon Abell, CFO
www.sdigroup.com
finnCap Ltd 020 7220 0500
Ed Frisby/Kate Bannatyne/Milesh Hindocha - Corporate Finance
Andrew Burdis/Sunila de Silva - ECM
About SDI Group plc:
SDI designs and manufactures scientific and technology products
for use in digital imaging and sensing and control applications
including life sciences, healthcare, astronomy, manufacturing,
precision optics and art conservation. SDI operates through its
company divisions: Atik Cameras, Synoptics, Graticules Optics,
Sentek, Astles Control Systems, Applied Thermal Control, MPB
Industries, Chell Instruments, Monmouth Scientific, Uniform
Engineering, Scientific Vacuum Systems, Safelab Systems and LTE
Scientific.
SDI continues to grow by developing its own technology
advancements and by improving its global sales channels, as well as
through pursuing strategic, complementary acquisitions.
www.sdigroup.com
The following information is in relation to the Acquisition
About LTE Scientific Limited
LTE Scientific specialises in the design, manufacture and
servicing of sterilizers, decontamination and thermal processing
equipment, used in the life science and medical market sectors.
For the year ended 31 December 2021, LTE Scientific achieved
revenues of approximately GBP6.4 million, EBIT of GBP0.4 million
and statutory profit before tax of GBP0.4 million (all
audited).
Based in Greenfield, Greater Manchester, LTE Scientific is
managed by John Lees, who has been Managing Director for the past
25 years and will continue to lead the business under SDI Group
ownership. LTE Scientific has approximately 70 staff.
Acquisition rationale
The Acquisition is in line with the Group's strategy of
acquiring businesses with complementary scientific and technology
products, with capable management teams in place and with
opportunities to grow further under the SDI Group structure. LTE
Scientific will reside within SDI's Sensors and Controls division.
The SDI Board considers that there are long term growth drivers for
LTE Scientific's products and services, and opportunities to expand
production in LTE Scientific's flexible factory facilities.
Consideration for the Acquisition
Total consideration is estimated at GBP5.5 million, including
approximately GBP1.3m excess cash acquired, and consists of:
-- Initial consideration of GBP4.2 million, payable in cash at completion; and
-- A balancing payment in cash shortly after completion,
expected to be of approximately GBP1.3m, which is dependent on the
net tangible assets of LTE Scientific delivered at completion. The
net assets include freehold ownership of LTE Scientific's
manufacturing facility, valued at approximately GBP1.65m.
The cash consideration will be funded from existing cash
resources and from the Group's revolving credit facility with HSBC
UK Bank. As at 30 April 2022, the Group had cash of approximately
GBP1.1 million (audited), bank debt of GBP4.0 million (audited) and
GBP16.0 million of undrawn bank facility (excluding accordion).
No statement in this announcement is intended to be a profit
forecast or estimate and no statement in this announcement should
be interpreted to mean that earnings per share of the Company for
the current or future financial years would necessarily match or
exceed the historical published earnings per share of the
Company.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
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