4th Apr 2025 13:09
(Alliance News) - SDI Group PLC on Friday said it has struck a deal to buy electric boiler designer and manufacturer Collins Walker Ltd for GBP1.9 million.
Cambridge, England-based SDI Group designs and manufactures scientific and technology products for digital imaging and sensing control applications.
It said the deal provides with "strategic entry into the highly-regulatory-driven electric boiler sector" with an addressable market estimated at USD255 million.
SDI said the expanding market for electric boilers will be boosted by net zero regulations.
SDI said the net consideration for the deal is GBP1.9 million, up to a maximum of GBP2.0 million, with a total consideration including acquired cash of GBP2.1 million, up to a maximum of GBP2.2 million.
The company said GBP1.8 million will be paid initially in cash, with a further GBP100,000 to be paid when the deal is finalised.
It said Collins Walker will be integrated into subsidiary Applied Thermal Control to give "expanded manufacturing capacity, strengthened sales capabilities, and improved operational efficiencies".
SDI noted further "value-added opportunities" as its subsidiary LTE Scientific uses electric boilers in its autoclave product line.
"Collins Walker represents a strategic acquisition for SDI, aligning with our core investment criteria through its established position within a regulatory-driven, high-growth sector with international reach," said Chief Executive Officer Stephen Brown.
"Its lean, profitable operations offer a compelling opportunity for expansion, leveraging existing group manufacturing capacity to capitalise on the growing net zero and energy efficiency markets. The integration of Collins Walker with Applied Thermal Control's manufacturing and operational capabilities, will reduce current capacity constraints and provide a platform for accelerated market penetration."
Shares in SDI Group were up 1.0% at 49.50 pence in London on Friday afternoon.
By Michael Hennessey, Alliance News reporter
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