Published on: August 1, 2022
Acquisition of LTE Scientific Limited
SDI Group has announced the acquisition of LTE Scientific Limited (LTE), a UK manufacturer of sterilizers and decontamination equipment, for an estimated total consideration of £4.2m, net of £1.3m excess cash acquired. The initial cash consideration is £4.2m, with a further £1.3m payment due shortly after completion. It will be funded by the group’s existing cash resources and £20m revolving credit facility, highlighting SDI’s balance sheet strength. The acquisition is expected to be immediately earnings enhancing. We therefore increase our estimates for this year and next, with a 3.6% uplift to our fully adjusted EBITDA for FY23E and 5.6% for FY24.