REG - Judges ScientificPLC - Acquisition of Luciol Instruments SA

Judges ScientificAnnouncement

01/02/2024 07:00

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RNS Number : 6126B  Judges Scientific PLC  01 February 2024

1 February 2024

Judges Scientific plc

("Judges Scientific", "Judges", the "Company" or the "Group")

Acquisition of Luciol Instruments SA

Judges Scientific, a group focused on acquiring and developing companies in
the scientific instrument sector, announces that its subsidiary PE.Fiberoptics
Ltd ("PFO") has acquired 100% of the issued share capital of Luciol
Instruments SA ("Luciol" or the "Acquisition"), a company manufacturing and
selling instruments to measure optic fibre properties based in Mies, Vd,
Switzerland.  The Board expects the Acquisition to be immediately earnings
enhancing.

The initial consideration for Luciol is CHF2 million in cash plus an
earn-out payment due in 2024 (and/or 2025) equal to four times the average
adjusted EBIT for the four years ended 31 December 2023 (or 2024 if
higher) minus CHF2.0 million. The total consideration, cash plus earn-out,
is capped at CHF2.5 million, which would be achieved if adjusted average EBIT
for either period exceeds CHF625,000.  An additional payment will be made to
reflect any excess working capital over and above the ongoing requirements of
the business, which the Board expects to be covered by the cash inherited at
the completion date.

The consideration for the Acquisition and associated transaction costs have
been funded from the Group's existing cash balances.

Alex Hambro, Chairman of Judges, said: "We are pleased to welcome Luciol, a
solid and profitable company manufacturing quality products, to the Judges
group. The Board believes that its interaction with PFO will be fruitful."

 

Information on Luciol

 

Luciol specialises in the design and manufacture of instruments that
characterize optical fibres using Optical Time-Domain Reflectometry (OTDR).
This is a similar method to that used by PFO to test telecommunications
fibres. Luciol was established in 2008 by a team of three engineers, two of
whom are still with Luciol and will remain employees until March 2025 to
assist in the transition of the business. In each of the three years prior to
31 December 2022, Luciol generated adjusted profit of approximately CHF0.5m.

 

For further information please contact:

 Judges Scientific plc                                        Shore Capital (Nominated Adviser & Joint Broker)

 David Cicurel, CEO                                           Stephane Auton

 Brad Ormsby, CFO                                             Iain Sexton

 Tel: +44 (0) 20 3829 6970                                    Tel: +44 (0) 20 7408 4090

 Liberum (Joint Broker)                                       Investec Bank plc (Joint Broker)

 Edward Mansfield                                             Virginia Bull

 Nikhil Varghese                                              Carlton Nelson

 Tel : +44 (0) 20 3100 2222                                   Tel: +44 (0) 20 7597 4000

 Alma (Financial Public Relations)

 Sam Modlin

 Rebecca Sanders-Hewett

 Joe Pederzolli

 Tel: +44 (0) 20 3405 0205

 judges@almastrategic.com (mailto:judges@almastrategic.com)

 

 

Notes to editors:

Judges Scientific plc (AIM: JDG), is a group focused on acquiring and
developing companies in the scientific instrument sector.  The Group now
consists of 23 businesses acquired since 2005.

The acquired companies are primarily UK-based with products sold worldwide to
a diverse range of markets including: higher education institutions,
scientific research facilities, manufacturers and regulatory authorities.
The UK is a recognised centre of excellence for scientific instruments.
The Group has received five Queen's Awards for innovation and export.

The Group's companies predominantly operate in global niche markets, with long
term growth fundamentals and resilient margins.

Judges Scientific maintains a policy of selectively acquiring businesses that
generate sustainable profits and cash.  Shareholder returns are created
through the reduction of debt, organic growth and dividends.

For further information, please visit www.judges.uk.com
(http://www.judges.uk.com/)

 

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