22nd Jan 2015 08:33
LONDON (Alliance News) - Judges Scientific PLC said Thursday it has acquired Hampshire-based instrument maker Armfield Ltd for GBP8.3 million, with an additional earn-out capped at GBP1.5 million.
The acquisition will be funded by the company's existing cash resources and an additional GBP4 million drawn down from its acquisition facility with Lloyds Bank Corporate Markets.
Judges said that the additional payment will be made to "reflect any excess working capital over and above the ongoing requirements of the business", while a further payment capped at GBP360,000 may be due if the valuation of Armfield's benefit pension fund as at March 31 2017 shows a reduction in the yearly contribution required to eliminate its funding deficit.
Armfield produces equipment and teaching instruments for universities and technical colleges, and research and development systems used in industries including the food and drink and pharmaceutical sectors.
Armfield posted a pretax profit of GBP1.3 million for 2013, on revenues of GBP12.2 million.
"Armfield is a world class company, with an acknowledged reputation for excellence in the educational sector, and its impact on the group's financial performance should be significant," said Chairman Alex Hambro in a statement.
Shares in Judges Scientific are trading up 6.1% at 1,650.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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