REG - Judges ScientificPLC - Acquisition of Magsputter Limited

Judges ScientificAnnouncement

15/08/2024 07:00

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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                                        Shore Capital (Nominated Adviser & Joint Broker)

 David Cicurel, CEO                                           Stephane Auton

 Brad Ormsby, CFO                                             Harry Davies-Ball

 Tel: +44 (0) 20 3829 6970

                                                              Tel: +44 (0) 20 7408 4090

 Liberum (Joint Broker)                                       Investec Bank plc (Joint Broker)

 Edward Mansfield                                             Virginia Bull

 Nikhil Varghese                                              Carlton Nelson

 Tel : +44 (0) 20 3100 2222                                   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 (mailto: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
(http://www.judges.uk.com/)

 

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