Leading designer and producer of digital imaging technology, Scientific Digital Imaging plc. recently announced that the company has acquired Thermal Exchange Ltd., a manufacturer of cooling and temperature control equipment. Apparently, Scientific Digital Imaging would be spending up to GBP1.1 million on this deal.
Further from the reports, Scientific Digital paid an initial amount of GBP 847,036 for Thermal Exchange. Further at completion, a cash payment would be made for the net assets, however it is not anticipated to cost over GBP 300,000. Scientific Digital stated that the company has funded this acquisition from existing cash resources.
Ken Ford, Chairman of Scientific Digital Imaging plc., said in a statement that this acquisition signifies another step in the group’s growth strategy. Thermal Exchange is a complementary fit and will be delivering potential areas for growth along with a talented workforce, he added.
Ford further stated that this acquisition is aligned with the previously announced strategy of the company regarding acquisitive and organic growth. He mentioned that this deal is anticipated to enhance earnings in its first full year of ownership.
The company also explained that it has extended its senior facility in agreement with HSBC Bank PLC, which forms part of HSBC Holdings PLC, to the full GBP 5 million from initial GBP 3 million. Furthermore, the last date was also extended to April 2022.
On the revenue of GBP 1.4 million, Thermal Exchange had supposedly generated GBP 210,000 pretax profit for the financial year ended September. The Leicester-based firm has 15 people in its staff and was founded in 1982. Comparing the two companies, Scientific Digital had a pretax profit of GBP 1.7 million, for the year ended April 2018, on a revenue of GBP 14.5 million. Scientific Digital also had a net cash of GBP 1.2 million by the end of 2018.