Judges Scientific buys EWB Solutions for £1.76m

(ShareCast News) - Judges Scientific, which buys and builds scientific instrument businesses, has bought EWB Solutions, a maker of scientific devices, for £1.76m in order to consolidate its position in the ultra high vacuum field.The acquisition, which is expected to be earnings enhancing, will also included an additional payment that reflects any "excess working capital over and above the ongoing requirements of the business".The £1.76m and any transaction costs were funded from a £10m acquisition facility granted in 2014 by Lloyds Bank Corporate Markets.Hertfordshire-based EWB Solutions reported for the year to 30 April revenue of £1.2m, pre-tax profit of £500,000 and had net tangible assets worth £1.6m, including £1.6m in cash. The average adjusted earnings before interest and tax (EBIT) generated for the five years was £440,000.EWB Solutions' founders Peter Moody, Steve Edwards and Bryan Walker, will continue in their positions for at least six months for a smooth transition and may stay for up to two years or more.While its operating profits for the year, adjusted to eliminate non-recurring items and to reflect its ongoing cost base within Judges Scientific, would have totalled £500,000.Judges Scientific's chairman Alex Hambro said: "EWB is an excellent company with quality products which will consolidate our group's pre-eminent position in the ultra high vacuum field. This cash generative acquisition enhances our earnings and fits within the Judges growth model."Shares in Judges Scientific were up 0.78% to 1,358p at 1030 GMT.