SDI Group acquires Monmouth Scientific

SDI Group has acquired Monmouth Scientific, a British manufacturer of biological safety cabinets, fume cupboards, laminar flow cabinets and cleanrooms for approximately £5.8m.

The AIM-listed group said on Thursday that Monmouth was currently benefiting from "high levels demand" for its solutions for Covid-19 testing infrastructure and added that the acquisition was expected to be immediately earnings enhancing.

SDI added that Monmouth was also expected to move to new larger purpose-built premises in 2022.

SDI will make an initial payment of £2.66m for Monmouth, £2.46m of which will be satisfied in cash, with the remaining £200,000 to be covered by the issuance of 230,680 ordinary shares in the company.

A further payment in cash will follow shortly after completion, equivalent to the net tangible assets of Monmouth Scientific at completion, currently estimated at £1.6m, while an earnout cash payment, payable after 31 March 2021, was estimated to be roughly £2.1m.

Chairman Ken Ford said: "Monmouth Scientific is a further step in our group growth strategy. It is a complementary fit with our stable of businesses providing laboratory equipment, and generates areas for potential growth."

As of 1000 GMT, SDI shares were up 8.74% at 93.52p.