SDI Group (SDI) announced on Monday it acquired Chell Instruments Limited for £4.3 million, its third acquisition in the past 12 months.
SDI Group told investors Chell will be part of its sensors and control reporting segment, and expects the acquisition to be earnings enhancing within the first year.
Chell designs, manufactures and calibrates pressure, vacuum and gas flow measurement instruments for the aerospace, vehicle aerodynamics, gas and steam turbine testing and power generation industries.
Ken Ford, Chairman of SDI said:"Chell Instruments is another step in our Group growth strategy. It is a complementary fit providing potential areas for growth.”
Chell had £4.7 million of revenue in 2018, and profits of £0.78 million, with about 76% of sales to the UK and 24% being exported.
Mr. Ford said: “The acquisition is in line with our previously announced strategy of organic and acquisitive growth and is expected to be earnings enhancing in its first full year of ownership."
Shares in SDI Group have risen from 35p since the start of the year
The AIM-listed firm manufactures scientific and technology products for use in digital imaging and sensing, reporting £17.4 million in revenue for the year ended 30 April 2019.
The acquisition marks the company’s third in 2019, after it acquired MPB Industries in April for £1.58 million, and Thermal Exchange for £847,000 in February.
SDI said Chell’s competitive advantages are its calibration laboratory, ‘deep understanding’ of its customers' applications, and its own manufacturing facility with ‘industry leading capabilities’.
The acquisition was funded from cash resources and bank debt; with SDI announcing an additional 3 year £4.8 million loan to be added to its £5m Senior Facility with HSBC Bank.
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