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Judges Scientific Acquires Heath Scientific for an Initial Consideration of GBP 5.3m
Friday 29 May 2020

UK-based Judges Scientific PLC, an acquisition company of scientific instruments, has acquired the entire issued share capital of UK-based calorimetry instruments provider Heath Scientific company Ltd. for an initial consideration of GBP 5.3m (USD 6.55m) in cash, the company said.

The consideration for the acquisition has been financed from the Group's GBP 35m (USD 43m) acquisition facility from Lloyds Bank Corporate Markets.

Potential further contingent consideration of up to a maximum GBP 2.0m (USD 2.47m) in aggregate (Earn-out Consideration) to be satisfied in cash.

The Earn-out Consideration will be payable if and to the extent that Heath's adjusted EBIT in the financial year to 30 April 2020 or in the 12-month period to 31 December 2020 exceeds GBP 879,000 (USD 1.086m).

The Earn-out Consideration may be payable in two tranches and the maximum earn-out would be payable if, in either period, adjusted EBIT exceeds GBP 1.22m (USD 1.51m).

Heath, through its subsidiaries Thermal Hazard Technology Ltd. and THT Inc., specialises in the design, manufacture and sale of instruments used to measure the thermal properties of lithium batteries and other reactive materials.

Its main product, the Accelerating Rate Calorimeter, is a key tool to improve and verify the safety of lithium batteries and of other chemical reactions.

This is an expanding market in light of the growth in the use of lithium batteries in electronic devices and electric vehicles.

Judges Scientific plc (AIM: JDG) is focussed on acquiring and developing companies in the scientific instrument sector. The group now consists of 18 businesses acquired since it was re-admitted to AIM in 2005.

The acquired companies are primarily UK-based with products sold worldwide to a diverse range of markets including: higher education institutions, the scientific communities, manufacturers and regulatory authorities.
Date Published: 29/05/2020