Norfolk-based Chell Instruments has been acquired by AIM quoted company SDI Group with funding provided by Chris Teale at HSBC.
HSBC helps fund the acquisition of Chell by SDI Group
Chell specialises in the design, manufacture and calibration of pressure, vacuum and gas flow measurement instruments for a variety of sectors including aerospace, vehicle aerodynamics, gas and steam turbine testing and power generation industries.
For the year ended 31 December 2018 Chell achieved revenue of £4.7m and gross profit of £2.5m.
SDL has acquired Chell for £4.3m plus an additional cash payment for net assets at completion.
SDI, which designs and manufactures scientific and technology products for use in digital imaging and sensing and control applications, has said that the acquisition is in line with the group's strategy of acquiring complementary businesses.
"Chell Instruments is another step in our group growth strategy," said Ken Ford, chairman of SDI.
"It is a complementary fit providing potential areas for growth. The acquisition is in line with our previously announced strategy of organic and acquisitive growth and is expected to be earnings enhancing in its first full year of ownership."
SDI Group has also revealed that in agreement with HSBC Bank, the company has taken a three-year amortising term loan of £4.8m to add to the senior facility of £5m, with the end date of both facilities being April 2023.
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