No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Buy and build group SDI revealed on Friday that has acquired high-temperature furnace systems and environmental chambers manufacturer Severn Thermal Solutions in a deal valued at £4.75m.
SDI said Severn Thermal Solutions was a "profitable business" in the material testing and processing industry, providing it with a "scientific niche" in a growing market, a blue-chip customer base and strong international revenues.
The AIM-listed group also noted that for the year ended 30 September, Severn delivered revenues of £2.42m, adjusted underlying earnings of £880,000 and a reported EBIT of £1.06m.
Chief executive Stephen Brown said: "Severn is a growing, profitable business, aligning with our key investment criteria of targeting scientific and industrial niche markets with global reach. Severn benefits from a strong, experienced management team who will remain in place, maintaining its sustainable sales pipeline, supported by significant international exposure.
"We are excited by the prospects for this acquisition, both as a standalone entity and in the cross-sell opportunities to other businesses across the Group. We continue to pursue our acquisitive growth strategy alongside our organic growth programme."
As of 1015 BST, SDI shares were up 8.99% at 77.38p.
Reporting by Iain Gilbert at Sharecast.com
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.
