Scientific Digital Imaging to buy Astles Controls Systems for £3.44m

Scientific Digital Imaging is to buy Astles Controls Systems, a manufacturer of chemical dosing systems, for £3.44m as part of its buy and build strategy, and will also raise £3.1m in equity.

The AIM-listed company will by Astles on a debt free cash basis consisting of £3.33m in cash and £100,000 in shares of 19p each, sold at 13p per share.

"This acquisition continues our stated buy and build strategy and enables us to further diversify the products we can offer to customers as well as widening our addressable market and increasing cross selling opportunities,” said chairman Ken Ford.

The deal includes an additional earn-out of up to £1.35m and payments for other assets at completion.

The company is also aiming to raise £3.1m through a placing and a subscription of 23.8m shares at 13p each from investors.

Ford has subscribed for 250,000 shares and chief executive Mike Creedon has subscribed for 76,924 shares.

There is also a new term loan facility, with an interest rate of 4% plus the 0.25% NatWest bank base rate, to replace the company's existing bank facilities, resulting in a new £1.16m term loan, which will be fully drawn following completion of the acquisition and is repayable over five years.

Shares in Scientific Digital Imaging were up 8.82% to 15.50p at 0835 GMT.