Judges Scientific Plc Acquisition of the business of KE Developments Ltd
Judges Scientific, the parent company of a group engaged in the design, manufacture and sale of scientific instruments, announces that Deben UK Limited ("Deben"), in which Judges holds a 51% indirect interest, has conditionally agreed to purchase the assets and trade of KE Developments Limited ("KED").
KED is based in Toft, Cambridgeshire and, like Deben, designs and manufactures accessories for electron microscopy. Management intends to transfer KED's business operations to Deben's premises in Woolpit, Suffolk, and all of KED's employees will be offered the opportunity to continue their employment at Deben.
Deben will purchase KED's fixed assets for £40,000 and will make a contingent goodwill payment capped at £300,000. The payment, spread over a period of five years, will be determined by the sales of the business post completion. In the year to 30 June 2011, KED's sales totalled £975,000 and normalised profit was around break-even. Completion is expected to take place on or around 6 March 2012 and it is anticipated that the relocation exercise will be concluded within three months of completion.
The Board believes that this bolt-on acquisition will prove to be an advantageous addition to Deben's electron microscopy business and will be earnings enhancing once the move to Woolpit has been completed.
Gary Edwards, Managing Director of Deben, commented:
"KED's product range represents an excellent fit with Deben's operations. Although the scale of KED's output has lessened in recent years we are confident that the core business, supported by excellent technology, will thrive within Deben and offer distinct benefits to our customer base."
David Cicurel, Chief Executive of Judges Scientific, added:
"We are pleased to be able to expand Deben's growing microscopy business. This first acquisition for Deben demonstrates the ongoing value of our partnership with Gary."