(Sharecast News) - Scientific instruments group Judges Scientific has acquired Cheshire-based deposition and plasma technology firm Henniker Scientific.
Judges Scientific said on Monday that the initial consideration for Henniker was £1.8m in cash, plus an earn-out payment due in 2024 and equal to four times underlying earnings for the year ended 31 March 2024, minus the initial payment value.
The AIM-listed group stated the total consideration has been capped at £2.3m, which will be achieved if EBIT for 2023-24 equals £578,000.
Judges Scientific expects the acquisition to be immediately earnings enhancing and highlighted that it was funded from existing cash balances.
Chairman Alex Hambro said: "We are pleased to welcome the Henniker team to the Judges family. The board believes that Henniker is a solid, growing, and profitable company manufacturing quality products."
As of 1055 BST, Judges Scientific shares were up 1.76% at 8,650.0p.
Reporting by Iain Gilbert at Sharecast.com