Judges Scientific PLC Acquisition of EWB Solutions Ltd (3603Q)
November 29 2016 - 1:01AM
UK Regulatory
TIDMJDG
RNS Number : 3603Q
Judges Scientific PLC
29 November 2016
Press Release 29th November 2016
Judges Scientific plc
("Judges Scientific", "Judges", the "Company" or the
"Group")
Acquisition of EWB Solutions Ltd
Judges Scientific, a group involved in the buy and build of
scientific instrument businesses, announces that it has today
acquired 100% of the issued share capital of EWB Solutions Ltd
("EWB" or the "Acquisition"), a maker of scientific devices based
in Hemel Hempstead, Hertfordshire. EWB manufactures edge-welded
bellows used in Ultra High Vacuum ("UHV") systems and various other
applications. The Board expects the Acquisition to be immediately
earnings enhancing.
The purchase price of EWB amounted to GBP1.76 million in cash.
An additional payment will be made to reflect any excess working
capital over and above the ongoing requirements of the business.
The Board expects such payment to be covered by the cash inherited
at the completion date.
Information on EWB
EWB specialises in the design and manufacture of edge-welded
bellows. The product is constructed from a series of metal
diaphragms, welded to form an accordion like structure that permits
free movement between two environments whilst maintaining hermetic
separation.
The majority of EWB's products are bespoke and sold directly to
original equipment manufacturers ("OEMs") for integration into UHV
systems; these provide high tech surface analysis & processing
techniques, for use in semi-conductor manufacturing,
nano-technology, nuclear science & general research. Other
applications include aerospace, medical and industrial devices.
Because of the OEM business bias, 85% of sales are within the UK
but a significant proportion of EWB products used in system
integration are built for export.
EWB was established in 1999 by Peter Moody, Steve Edwards and
Bryan Walker, all of whom will continue in their present positions
for at least six months to facilitate a smooth transition and may
stay for up to two years or more according to their individual
choice.
EWB's accounts for the financial year to 30 April 2016 show
revenues of GBP1.2 million and pre-tax profits of GBP0.5 million.
Net tangible assets amounted to GBP1.6million, including cash of
GBP1.6 million.
EWB's operating profits for the year ended 30 April 2016,
adjusted to eliminate non-recurring items and to reflect EWB's
ongoing cost base within Judges, would have totalled GBP0.5m.
The average adjusted EBIT generated by EWB for the five years
ended on 30 April 2016 was GBP0.44 million.
Financing of the Acquisition
The consideration for the Acquisition and associated transaction
costs have been largely drawn down from the Group's GBP10 million
acquisition facility granted in 2014 by Lloyds Bank Corporate
Markets.
The Board believes that EWB is a solid and profitable company
making quality products, which will consolidate the Group's
pre-eminent position in the UHV field.
Alex Hambro, Chairman of Judges, said:
"EWB is an excellent company with quality products which will
consolidate our Group's pre-eminent position in the Ultra High
Vacuum field. This cash generative acquisition enhances our
earnings and fits within the Judges growth model. We are delighted
to welcome Peter, Steve, Bryan and their colleagues to Judges'
team."
For further information please contact:
Judges Scientific
David Cicurel, CEO Tel: +44 (0) 203
Brad Ormsby, Group FD 829 6970
Shore Capital (Nominated Adviser
& Broker)
Stephane Auton Tel: +44 (0) 20 7408 4090
Edward Mansfield
Media enquiries:
Abchurch (Financial Public Relations)
Julian Bosdet/George Robinson Tel: +44 (0) 20 7398 7741
/ Rebecca Clube www.abchurch-group.com
Notes to editors:
Judges Scientific plc (AIM: JDG), is a group involved in the buy
and build of scientific instrument businesses. The Group currently
consists of 15 businesses acquired since it was first admitted to
AIM in 2003.
The acquired companies are primarily UK-based with products sold
worldwide to a diverse range of markets including: higher education
institutions, the scientific communities, manufacturers and
regulatory authorities. The UK is a recognised centre of excellence
for scientific instruments. The Group companies hold five Queen's
Awards for innovation and export.
Judges Scientific maintains a policy of selectively acquiring
businesses that generate sustainable profits and cash. Shareholder
returns are created through the repayment of debt, organic growth
and dividends.
The Group's companies predominantly operate in niche end
markets, with long term growth fundamentals and resilient
margins.
For further information, please visit www.judges.uk.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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