Scientific Digital Imaging acquiring Applied Thermal Control

Scientific and technology products designer and manufacturer Scientific Digital Imaging announced the acquisition of Applied Thermal Control on Thursday for an initial consideration of £0.69m, with the total consideration including earn-out capped at £1.2m, plus an additional cash payment for net assets at completion.

The AIM-traded company said ATC designs and manufactures precision recirculating chillers, coolers and heat exchangers used to control the thermal environment within a wide variety of applications, including within the scientific instrument support market.

For the year ended 31 December 2015, ATC achieved revenue of £1.12m, gross profit of £0.69m and profit before tax of £0.2m.

Scientific Digital Imaging said that for the year ended 31 December 2016, ATC achieved revenue of £1.2m, gross profit of £0.76m and profit before tax of £0.13m - the lower profit before tax in 2016 reportedly reflecting the cost of investment for growth in sales and marketing.

The board said the acquisition was in line with the group's strategy of acquiring complementary businesses, adding it had already identified areas within ATC with potential for growth.

“ATC represents another exciting step in our group growth strategy,” said Scientific Digital Imaging chairman Ken Ford.

“ATC is a complementary fit to the group and provides potential areas for growth alongside a talented workforce.

“The acquisition is in line with our previously announced acquisition strategy and is expected to be earnings enhancing in its first full year of ownership.”