JUDGES SCIENTIFIC PLC

M&A Activity • Aug 15, 2024

National Storage Mechanism | Additional information

RNS Number : 4962A

Judges Scientific PLC

15 August 2024

Judges Scientific plc

("Judges Scientific", "Judges", the "Company" or the "Group")

Acquisition of Magsputter Limited

Judges Scientific, a group focused on acquiring and developing companies in the scientific instrument sector, announces that it has acquired 100% of the issued share capital of Magsputter Limited ("Magsputter" or the "Acquisition"), the holding company of Teer Coatings Limited ("Teer"), a company specialising in manufacturing coating instruments and providing coating services.  The Board expects the Acquisition to be immediately earnings enhancing.

The initial consideration for the Acquisition is £12.3m in cash.  An additional payment will be made to reflect any excess working capital over and above the ongoing requirements of the business, which the Board expects to be covered by the cash inherited at the completion date. 

The Acquisition's consolidated accounts for the year ended 31 January 2024 showed net assets of £6.0m and profit before tax of £1.8m. Adjusted EBIT (to reflect its post-acquisition cost base) for the same period after deduction of notional rent for the property owned and occupied by Teer, amounted to £1.74m.  The initial consideration is equal to six times adjusted EBIT plus the independent valuation of the property.

The initial consideration for the Acquisition and associated transaction costs have been funded from the Group's existing bank facilities.

Magsputter was created to facilitate the management buyout of Teer in 2019. The buy-out team consisted of Wayne Southall, sales and marketing director, Dr Hailin Sun, technology director and Angela Byrne, the commercial director. Wayne and Hailin will remain with the Company and Angela will retire within six months of completion.

Alex Hambro, Chairman of Judges, said:  "We are pleased to incorporate Teer, a market leader in its niche, into the Judges group. The Board believes that Teer, with its outstanding scientific competence, will prosper in Judges, and we welcome them to the Judges team."

Information on Teer

Teer is a leading provider of cutting-edge coatings through PVD (physical vapour deposition) magnetron sputtering. It sells its instruments and provide services to academia and industries requiring particularly demanding surfaces such as aerospace, motorsport and medicine. Instrument sales and coating services are each producing half of the Company's revenue. Teer is based in Droitwich Spa, Worcestershire.

For further information please contact:

Judges Scientific plc David Cicurel, CEO Brad Ormsby, CFO Tel: +44 (0) 20 3829 6970	Shore Capital (Nominated Adviser & Joint Broker) Stephane Auton Harry Davies-Ball Tel: +44 (0) 20 7408 4090
Liberum (Joint Broker) Edward Mansfield Nikhil Varghese Tel : +44 (0) 20 3100 2222	Investec Bank plc (Joint Broker) Virginia Bull Carlton Nelson Tel: +44 (0) 20 7597 4000
Alma (Financial Public Relations) Sam Modlin Rebecca Sanders-Hewett Joe Pederzolli Tel: +44 (0) 20 3405 0205 judges@almastrategic.com

Notes to editors:

Judges Scientific plc (AIM: JDG), is a group focused on acquiring and developing companies in the scientific instrument sector.  The Group now consists of 25 businesses acquired since 2005.

The acquired companies are primarily UK-based with products sold worldwide to a diverse range of markets including: higher education institutions, scientific research facilities, manufacturers and regulatory authorities.  The UK is a recognised centre of excellence for scientific instruments.  The Group has received five Queen's Awards for innovation and export.

The Group's companies predominantly operate in global niche markets, with long term growth fundamentals and resilient margins.

Judges Scientific maintains a policy of selectively acquiring businesses that generate sustainable profits and cash.  Shareholder returns are created through the reduction of debt, organic growth and dividends.

For further information, please visit  www.judges.uk.com

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