SDI acquires Norfolk-based business Chell Instruments
Digital imaging products manufacturer SDI Group acquired Norfolk-based outfit Chell Instruments on Monday for £4.2m, plus an additional cash payment for net assets at completion.
SDI expects the acquisition of Chell, which specialises in the design, manufacture and calibration of pressure, vacuum and gas flow measurement instruments for a variety of sectors, to be earnings enhancing in its first full year of ownership.
For the year ended 31 December 2018, Chell achieved revenues of £4.7m, gross profits of £2.5m and pre-tax profits of £780,000.
The AIM-listed group said it had already identified areas within Chell that hold the potential for growth using the "strong management team" it had recruited.
Chairman Ken Ford said: "Chell Instruments is another step in our group growth strategy. It is a complementary fit providing potential areas for growth.
"The acquisition is in line with our previously announced strategy of organic and acquisitive growth and is expected to be earnings enhancing in its first full year of ownership."
As of 0835 GMT, SDI shares had picked up 1.49% to 68p.