SDI Group plc, the specialist buy-and-build group focused on scientific and industrial technologies, has announced the acquisition of Severn Thermal Solutions Ltd (Severn) for a net consideration of £4.75 million.

The move adds a profitable and technically advanced business to SDI's growing Lab Equipment segment.

Severn, based in the UK, is a designer and manufacturer of high-temperature furnace systems and environmental chambers used in advanced material processing and testing. Its specialist equipment serves a wide range of sectors, including nuclear, aerospace, and semiconductors. The company's systems are capable of operating in extreme temperature conditions—from over 3000°C to close to absolute zero.

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Acquisition highlights include:

• Entry into the controlled environment market, enhancing SDI’s presence in the material testing and processing industry

• Strong international revenues and blue-chip customer base aligned with SDI’s acquisition strategy

• Severn to join SDI’s Lab Equipment segment with opportunities for intra-group cross-selling

• Expected to be immediately earnings enhancing

For the year ending 30 September 2024, Severn reported unaudited revenue of £2.42 million, with adjusted EBIT of £0.88 million (reflecting Severn's cost base within the enlarged Group), and a reported EBIT of £1.06 million.

Stephen Brown, Chief Executive Officer of SDI Group, commented: "Severn is a growing, profitable business, aligning with our key investment criteria of targeting scientific and industrial niche markets with global reach. Severn benefits from a strong, experienced management team who will remain in place, maintaining its sustainable sales pipeline, supported by significant international exposure.

"We are excited by the prospects for this acquisition, both as a standalone entity and in the cross-sell opportunities to other businesses across the Group. We continue to pursue our acquisitive growth strategy alongside our organic growth programme."