SDI acquires Severn Thermal Solutions

(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