SDI Group paying £5.8m for synergistic UK business
Acquisition hungry scientific and technology specialist SDI Group has studded a fresh jewel into its Cambridge crown.
The AIM-quoted group has bought Monmouth Scientific, a UK manufacturer of biological safety cabinets, fume cupboards, laminar flow cabinets and cleanrooms, for around $5.8 million.
Monmouth Scientific specialises in providing controlled clean air environments for scientific medical and other technical applications and is benefiting from high levels of demand for its solutions for the broad COVID-19 testing infrastructure.
It is expected to expand into a new and larger purpose-built HQ in 2022. The acquisition is expected to be immediately earnings enhancing.
SDI chairman Ken Ford said: “Monmouth Scientific is a further step in our group growth strategy. It is a complementary fit with our stable of businesses providing laboratory equipment and generates areas for potential growth.”
For the year ended March 31, 2020, Monmouth Scientific achieved revenues of £6.2m and EBIT of £0.4m and for the six months ended September 30 achieved revenues of £3.7m and EBIT of £0.8m.
Around 80 per cent. of Monmouth Scientific’s sales are to UK customers. The COVID-19 pandemic has generated a significant surge in demand for the company’s biological safety cabinets which is expected to continue for the rest of its financial year.
Based in Bridgwater, Somerset, Monmouth Scientific was founded in 2003 by David and Lisa Pomeroy and employs around 65 staff. David will continue to lead the company within the SDI Group.
Excluding current COVID-19 led demand, the SDI board considers that there are long term growth drivers for Monmouth Scientific’s products and services.
The cash consideration of the deal will be funded from existing resources and from SDI’s existing revolving credit facility with HSBC.
To help fund the acquisition, SDI has issued 230,680 new ordinary shares.
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.