Published on: March 28, 2022

Acquisition of Safelab Systems Limited

SDI Group has announced the acquisition of Safelab Systems Limited (Safelab), a UK manufacturer of fume cupboards, for an estimated total consideration of £7.7m, net of £0.7m cash acquired. The initial consideration is £5.5m, of which £5.3m is cash and £200k in ordinary shares. A further £2.9m cash payment is due shortly after completion. The total cash consideration will be funded by the group’s existing cash resources and revolving credit facility, highlighting SDI’s balance sheet strength. The acquisition is expected to be broadly neutral to FY22 profit but earnings enhancing from FY23. We therefore make a minor adjustment to our FY22 forecasts, with an 11% uplift to our fully adjusted operating profit for FY23E.

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