Business
Acquisition of Magsputter Limited
Acquisition of Magsputter Limited.
About this update from Judges Scientific Plc
[{"type":"text","content":"\n\nJudges Scientific plc\n(\"Judges Scientific\", \"Judges\", the \"Company\" or the \"Group\")\nAcquisition of Magsputter Limited\nJudges Scientific, a group focused on acquiring and developing companies in the scientific instrument sector, announces that it has acquired 100% of the issued share capital of Magsputter Limited (\"Magsputter\" or the \"Acquisition\"), the holding company of Teer Coatings Limited (\"Teer\"), a company specialising in manufacturing coating instruments and providing coating services. The Board expects the Acquisition to be immediately earnings enhancing.\nThe initial consideration for the Acquisition is £12.3m in cash. An additional payment will be made to reflect any excess working capital over and above the ongoing requirements of the business, which the Board expects to be covered by the cash inherited at the completion date. \nThe Acquisition's consolidated accounts for the year ended 31 January 2024 showed net assets of £6.0m and profit before tax of £1.8m. Adjusted EBIT (to reflect its post-acquisition cost base) for the same period after deduction of notional rent for the property owned and occupied by Teer, amounted to £1.74m. The initial consideration is equal to six times adjusted EBIT plus the independent valuation of the property.\nThe initial consideration for the Acquisition and associated transaction costs have been funded from the Group's existing bank facilities.\nMagsputter was created to facilitate the management buyout of Teer in 2019. The buy-out team consisted of Wayne Southall, sales and marketing director, Dr Hailin Sun, technology director and Angela Byrne, the commercial director. Wayne and Hailin will remain with the Company and Angela will retire within six months of completion.\nAlex Hambro, Chairman of Judges, said: \"We are pleased to incorporate Teer, a market leader in its niche, into the Judges group. The Board believes that Teer, with its outstanding scientific competence, will prosper in Judges, and we welcome them to the Judges team.\"\nInformation on Teer\nTeer is a leading provider of cutting-edge coatings through PVD (physical vapour deposition) magnetron sputtering. It sells its instruments and provide services to academia and industries requiring particularly demanding surfaces suc...