Published on: February 1, 2021
£350k acquisition for Monmouth Scientific
SDI Group has announced the acquisition by its recently acquired subsidiary Monmouth Scientific of Uniform Engineering, for cash consideration of £350k – funded by the group’s existing revolving credit facility. Uniform Engineering manufactures high-quality bespoke metal enclosures and housings used in a variety of applications including pharmaceutical, laboratory and safety equipment, and is a component supplier to Monmouth Scientific. The acquired business generated £1.0m in revenues and £0.1m profit before tax for the year to 30 May 2020, so we estimate that the purchase price equates to a reasonable c 3.5x EBIT multiple. We expect the acquisition to be immediately earnings enhancing and accordingly make minor upgrades to our FY21 and FY22 forecasts, with FY21 revenue growth now forecast at 33.6% and adjusted EPS growth at 38.7%.