CAMBRIDGE: SDI Group plc, a buy-and-build company specializing in lab equipment, industrial sensors and scientific products, has acquired Severn Thermal Solutions Ltd., a designer and manufacturer of high-temperature furnace systems and environmental chambers, for a net consideration of £4.75 million ($6.1 million).
Severn, based in Dursley, U.K., produces advanced material testing and processing systems used in industries such as nuclear, aerospace and semiconductors. Its products operate in extreme conditions, reaching temperatures exceeding 3,000°C or near absolute zero. The acquisition expands SDI’s presence in the controlled environment market and adds a blue-chip customer base with strong international revenues.
For the year ended Sept. 30, 2024, Severn reported unaudited revenue of £2.42 million ($3.1 million) and adjusted earnings before interest and taxes (EBIT) of £0.88 million ($1.1 million). The deal is expected to immediately enhance SDI’s earnings.
“Severn aligns with our strategy of investing in profitable, niche scientific markets with global reach,” said Stephen Brown, CEO of SDI Group. “We see significant cross-selling opportunities across our lab equipment segment.”
Severn’s management team, including majority shareholders Nigel and Tracy Ryder, will remain with the company. Founded in 2006, Severn employs 11 people and sells its products in more than 25 countries.
The acquisition was funded through SDI’s revolving credit facility with HSBC UK Bank. As of April 30, 2025, SDI held £1.3 million ($1.7 million) in cash and £15.1 million ($19.6 million) in bank debt, with £9.9 million ($12.9 million) in undrawn credit remaining.
SDI Group continues to pursue growth through acquisitions and organic expansion.
SDI Group acquires and develops companies in the scientific and industrial technology sectors. Its portfolio includes businesses specializing in lab instruments, sensors and precision manufacturing.
Severn designs and manufactures high- and low-temperature testing systems for aerospace, nuclear and semiconductor applications. The company operates from a 4,500-square-foot facility in Dursley, U.K.