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.
01 Aug 2022
SDI: Acquisition of LTE Scientific Limited
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SDI: Acquisition of LTE Scientific Limited
SDI Group plc (SDI:LON) | 56.0 0.6 1.8% | Mkt Cap: 58.5m
- Published:
01 Aug 2022 -
Author:
Tessa Starmer -
Pages:
4
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.