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Published on: October 24, 2022

Acquisition to increase global presence

SDI Group has announced the acquisition of Fraser Anti-Static Techniques Limited (Fraser), a UK-based global leader in the manufacture of anti-static equipment. The estimated total consideration is £13m, net of approximately £3.9m excess cash acquired. The acquisition will be funded from SDI’s existing cash resources and revolving credit facility; as at 30 September the group had c.£3.3m of cash, £7.0m bank debt and £13.0m undrawn bank facility. Fraser represents a departure from SDI’s usual sub-£10m targets. The business is already highly profitable, with sales offices in China and Germany. A large proportion of revenue is to overseas customers, and we see good scope to increase global market share across the SDI Group. The acquisition is expected to be immediately earnings enhancing. We therefore increase our estimates for this year and next, with a 4.2% uplift to fully adjusted EBITDA for FY23E and 2.6% for FY24E (given our assumption of lower Atik revenues).

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