REG - SDI Group PLC - Acquisition of PRP Optoelectronics

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RNS Number : 8541S  SDI Group PLC  13 February 2026

SDI Group plc

("SDI", the "Company", or the "Group")

 

Acquisition of PRP Optoelectronics

 

Entry for SDI into the avionics markets delivering essential components into
programmes including Eurofighter Typhoon, F-16 and F-22 Raptor

 

13 February 2026 - SDI Group plc (https://sdigroup.com/) , the buy and build
group, focused on companies which design and manufacture specialist lab
equipment, industrial & scientific sensors and industrial & scientific
products, is pleased to announce the acquisition of PRP Optoelectronics Ltd
("PRP") for a net consideration of £9.3m.

 

Highlights

 

·      PRP designs and manufactures custom high performance microLEDs,
LED light engines and monolithic LEDs for a range of applications within the
avionics, defence and industrial sectors

·      A profitable and growing business, servicing a critical and
technical niche, particularly within the aerospace and defence markets where
its products are essential components in a number of programmes including the
Eurofighter Typhoon, F-16 and F-22 Raptor

·      Long-term revenue visibility, supported by long-term agreements,
with a stable, blue-chip customer base and strong international revenues

·      PRP will join the Group's Industrial & Scientific Sensors
division and further SDI's penetration into the aerospace industry

·      Further delivery of SDI's stated growth strategy, expected to be
earnings enhancing(1) in the first full year of ownership

 

PRP produces custom made, high performance microLEDs and LED devices, with its
products delivering precision illumination from infra-red through to
ultra-violet in a range of applications. PRP's ability to offer complete
in-house capabilities from semiconductor wafer processing to final system
assembly, means it can deliver bespoke solutions for demanding applications
such as avionics displays, thermal imaging and water and air purification
systems.

 

The acquisition of PRP extends SDI's footprint into the resilient and
lucrative aerospace and defence sector, including a stable blue-chip customer
base and revenues primarily linked to overseas end markets.

 

Further, the inclusion of PRP's LED micro-displays for optical systems and UV
purification products create a complementary offering to SDI, strengthening
the Group's footprint across the specialist end markets occupied by both
Graticules Optics and MPB Industries.

 

For the year ended 31 December 2025, PRP delivered revenues of £5.99m and
reported EBIT of £1.54m (unaudited management accounts) and showed net assets
of £4.43m, which includes cash.

 

Stephen Brown, CEO of SDI Group, said:

"The acquisition of PRP is a significant milestone for SDI, marking our entry
into the avionics markets. The business boasts a range of products in a very
particular niche, which have applications across multiple sectors, including
in aviation and on platforms, including the General Dynamics F-16 and Airbus
A320 among others.

 

PRP is a profitable business, with strong revenue visibility and an
international customer base which meets our key acquisition criteria. We're
enormously excited to welcome the PRP team into the Group and looking forward
to working with them as they execute on their new business pipeline, and as we
continue to drive the Group forward with our organic and inorganic growth
strategies."

 

 

About PRP Optoelectronics

Established in 1989, the company initially built its reputation in the defence
sector, providing ruggedised LED displays for military avionics and
instrumentation. PRP has since expanded its expertise to include monolithic
LED arrays and micro LED technology, serving a diverse range of industries
including military and civil aviation (including platforms such as Eurofighter
Typhoon, General Dynamics F-16, Lockheed Martin F-22 Raptor and Airbus A320
amongst others), medical photodynamic therapy, and industrial printing. PRP
employs 33 people and is based in a 20,000 sq ft. site in Swindon, UK.
Managing Director, Kevin Peart and Technical Director, Sam Cox (the majority
shareholders) will remain with the business in a full-time capacity.

 

Consideration for the Acquisition

Net consideration is £9.3m, excluding £2.8m of acquired net cash. Total
consideration comprises the following:

·      Cash consideration paid immediately on completion of £11.3m; and

·      Deferred cash consideration of £0.8-0.9m, subject to working
capital completion accounts, which will be paid to the sellers after
completion.

 

The cash consideration will be funded from the Group's revolving credit
facility with HSBC UK Bank. As at 31 January 2026, the Group had cash of
approximately £1.1m (unaudited), bank debt of £19.4m (unaudited) and £5.5m
of undrawn bank facility (excluding the accordion option). The Group exercised
£6m of its accordion option in early February 2026, with £9m of the
accordion facility remaining unexercised.

 

 

(1)Analysts from SDI's brokers Cavendish Capital Markets Limited and Stifel
Nicolaus Europe Limited, and from Progressive Equity Research regularly
provide research on the Company, and the Group considers the average of their
forecasts to represent market expectations which for FY26 were, prior to
announcement of this acquisition, Sales of £74.8m and Adjusted Profit Before
Tax of £9.8m. Research from Cavendish Capital Markets Limited and Progressive
Equity Research is available from SDI's website.

 

 

 

 Enquiries:

     SDI Group plc                                                        +44 (0)1223 727144

     Stephen Brown, Chief Executive Officer                               www.sdigroup.com (http://www.sdigroup.com)

     Amitabh Sharma, Chief Financial Officer
     James Dimitriou, Group Head of Corporate Development

     Cavendish Capital Markets Ltd (NOMAD & Joint Corporate Broker)       +44 (0)20 7220 0500

     Ed Frisby / Seamus Fricker - Corporate Finance

     Andrew Burdis / Sunila de Silva - Corporate Broking

     Stifel (Joint Corporate Broker)                                      +44 (0) 20 7710 7600
     Fred Walsh / Brough Ransom / Ben Good

     Vigo Consulting (Financial Communications)                           +44 (0)20 7390 0230

     Tim McCall / Rozi Morris / Fiona Hetherington                        SDIGroup@vigoconsulting.com (mailto:SDIGroup@vigoconsulting.com)

 

About SDI Group plc

 

SDI Group plc is a group of small to medium size companies with specialist
industrial and scientific products in growth sector niches which help solve
customers' key challenges.

 

It specialises in the acquisition and development of companies that design and
manufacture specialist products for use in lab equipment, industrial &
scientific sensors and industrial & scientific products.

 

Its portfolio of businesses supplies the life sciences, healthcare, plastics
and packaging, manufacturing, precision optics and measurement instrumentation
markets.

 

SDI aims to continue its growth through driving the organic growth of its
portfolio companies and by the acquisition of complementary technology
businesses with established reputations in global markets.

 

For more information, please see: www.SDIGroup.com (http://www.SDIGroup.com)

 

No statement in this announcement is intended to be a profit forecast or
estimate and no statement in this announcement should be interpreted to mean
that earnings per share of the Company for the current or future financial
years would necessarily match or exceed the historical published earnings per
share of the Company.

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

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