TIDMSDI
RNS Number : 4066S
SDI Group PLC
06 November 2023
SDI Group plc
("SDI", the "Company" or the "Group")
(AIM: SDI)
Acquisition of Peak Sensors
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 3 November 2023 of Peak Sensors
Holdings Limited ("Peak Sensors" or "Peak"), a UK manufacturer of
temperature sensors (the "Acquisition"). Total consideration is
forecast to be approximately GBP2.4m.
Highlights:
-- Peak Sensors is a leading UK manufacturer of temperature
sensors, specialising in standard and bespoke thermocouples and
resistance thermometers which are used in various industries,
including glass, ceramic, incinerators (including energy from
waste), cement, and ovens.
-- Peak is based in Chesterfield with a 5,300 sq ft leasehold
facility, and has approximately 14 employees.
-- Revenues for the year ended 31 March 2023 were GBP2.1m, with EBIT of c.GBP330,000.
-- Peak will join the Group's Sensors and Controls division.
-- Acquisition is expected to be earnings enhancing in the first full year of ownership.
Ken Ford, Chairman of SDI said: "The acquisition of Peak is a
further step in our Group growth strategy, demonstrating again the
opportunities to acquire businesses with high quality products with
export growth potential. The Acquisition is expected to be earnings
enhancing in the first full year of ownership. We are delighted to
welcome Roshan Aucklah, Peter Smith and their staff at Peak to the
SDI Group."
FURTHER INFORMATION ON THE ACQUISITION IS SET OUT BELOW
Enquiries
SDI Group plc 01223 727144
Ken Ford, Chairman
Mike Creedon, CEO
Ami Sharma, CFO
www.sdigroup.com
Cavendish Capital Markets Limited 020 7220 0500
Ed Frisby/Seamus Fricker- Corporate Finance
Andrew Burdis/Sunila de Silva - ECM
SDI designs and manufactures scientific and technology products
for use in digital imaging and sensing and control applications
including life sciences, healthcare, astronomy, plastics and
packaging, manufacturing, precision optics, measurement
instrumentation and art conservation. SDI operates through its
subsidiaries: 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, LTE Scientific, Fraser
Anti-Static Techniques and Peak Sensors.
Corporate expansion is via organic growth within its subsidiary
companies and through the acquisition of complementary, niche
technology businesses with established reputations in global
markets.
The following information is disclosed in relation to the
Acquisition.
About Peak Sensors
Peak Sensors comprises three companies: Peak Sensors Holdings
Limited and two wholly owned subsidiaries, Peak Sensors Limited and
Peak Sensors (Property) Limited. Peak Sensors Limited is the main
trading company in the Group, employing all members of staff.
Peak Sensors is a leading UK manufacturer of temperature
sensors, specialising in standard and bespoke thermocouples and
resistance thermometers. With over 25 years of experience, the
company serves various industries, including glass, ceramic,
incinerators (including energy from waste), cement, and ovens. Peak
exports to more than 85 countries in 6 continents, with
approximately 17% overseas sales.
For the year ended 31 March 2023, Peak Sensors achieved revenues
of approximately GBP2.1m, EBIT of c.GBP330,000, and the Group's
statutory profit before tax was c.GBP367,000 (all consolidated,
unaudited).
Peak Sensors operates from a single site in Chesterfield. Roshan
Aucklah, CEO since 2017, will stay on to lead the business under
SDI Group ownership. Peter Smith, one of the founders of the
business, will stay on as a consultant. Peak has approximately 14
employees.
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. Peak
will join SDI's Sensors and Controls division. The SDI Board
considers that there are long term growth drivers for Peak's
products and services internationally.
Consideration for the Acquisition
Total consideration is estimated at GBP2.4m and consists of:
-- Initial cash consideration on completion of GBP1.58m; and
-- A balancing payment in cash shortly after completion,
expected to be approximately GBP0.82m, which is dependent on the
total consolidated net assets of Peak Sensors Holdings Limited at
completion. The acquired net assets are expected to include a small
cash balance being Peak's ongoing cash working capital.
The cash consideration will be funded from the Group's revolving
credit facility with HSBC UK Bank. As at 30 September 2023, the
Group had cash of approximately GBP1.8m (unaudited), bank debt of
GBP15.1m (unaudited) and GBP9.9m 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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