(Alliance News) - SDI Group PLC on Thursday said it has acquired UK biological safety cabinets manufacturer Monmouth Scientific Ltd for a total estimated consideration of GBP5.8 million excluding acquired cash.
The Cambridge-based scientific and technology products maunfacturer's total consideration is capped at GBP6.94 million, including an estimated GBP600,000 of acquired cash. It consists of an initial GBP2.66 million, of which GBP2.46 million in cash and GBP200,000 in ordinary shares equating to 230,680 shares will be issued at 86.7 pence per share.
A payment in cash is expected to follow that is equivalent to the net tangible assets of Monmouth Scientific at completion, which is currently estimated at GBP1.6 million and includes approximately GBP600,000 in cash.
The consideration also consists of an earnout cash payment, currently estimated at GBP2.1 million, to be payable after March 31, 2021.
Chair 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. The acquisition is expected to be immediately earnings enhancing."
Shares in SDI Group were 5.5% at 90.75 in London on Thursday.
By Zoe Wickens; zoewickens@alliancenews.com
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SDI Group (SDI)