SDI Group has announced the acquisition of Severn Thermal Solutions Ltd, a UK manufacturer of high temperature furnace systems and environmental chambers for advanced material processing. This marks the third acquisition in a nine-month period, following Collins Walker (£1.9m) in April 2024 and Inspecvision (£6.1m) in October 2024. The acquisition is expected to be immediately earnings enhancing and we increase our FY26 estimates, with a 6% uplift to our adjusted EBIT. Severn is a steadily growing, profitable business, operating in a niche market. The total consideration is £8.32m, which includes £3.57m of acquired cash, leaving £4.75m net consideration. This represents a very favourable multiple of 5.4x, in line with SDI’s investment criteria.