LONDON, UK: Judges Scientific’s wholly owned subsidiary Quorum Technologies Limited has acquired 100% of the issued share capital of Moorfield Nanotechnology Limited, a maker of coating instruments based in Knutsford, Cheshire.
The Board expects the acquisition to be immediately earnings enhancing.
The purchase price of Moorfield, paid in cash at completion, amounts to £2.3 million. This includes an earn-out based on Moorfield’s adjusted EBIT in the year to 30 June 2019, capped at £0.7 million. An additional payment will be made to reflect any excess cash balances over and above the ongoing requirements of the business. The Board expects such payment to be covered by the cash inherited at the completion date.
The consideration for the acquisition has been financed from the Group’s £35 million acquisition facility from Lloyds Bank Corporate Markets.
Moorfield specialises in the design and manufacture of physical and chemical vapour deposition instruments used to cover materials with thin films. Moorfield’s systems are used for academic and industrial research, including semiconductors, photovoltaics, graphene and 2D materials.
Moorfield was established in 1989 by Jonathan and Vivienne Whitehead. Jonathan Whitehead will continue in his current role for a year to facilitate a smooth transition; Jonathan Edgeworth, the Managing Director, will continue to lead Moorfield as an autonomous business in close cooperation with Quorum.
Moorfield’s accounts for the financial year to 30 June 2019 show revenues of £2.5 million and pre-tax profits of £0.6 million. Net tangible assets amounted to £1.7 million, including cash of £1.5 million.
Moorfield’s operating profit for the year ended 30 June 2019, adjusted to eliminate non-recurring items and to reflect Moorfield’s ongoing cost base within Judges, would have totalled £0.6 million.
Quorum is a world leading manufacturer of instruments used to coat samples for electron microscopy; Quorum’s main market is life sciences and the association with Moorfield will open new horizons into material science.
Alex Hambro, Chairman of Judges, said: “Moorfield is an excellent company with quality products, which will complement Quorum’s pre-eminent capabilities in the coating sector. This cash generative acquisition enhances our earnings and fits within the Judges disciplined growth model. We are delighted to welcome Jonathan, Jonathan and their colleagues to Judges’ family.”