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Highlights

  • Entry into the high-growth electric boiler market, currently valued at $255 million.
  • Collins Walker to join SDI’s Industrial & Scientific Products division, strengthening its market position.
  • Integration with Applied Thermal Control, enhancing manufacturing capacity and operational efficiency.
  • Expected earnings enhancement in the first full year, with long-term growth potential.

SDI Group plc (LSE:SDI), a leading buy-and-build company specializing in scientific and industrial equipment, has announced the acquisition of Collins Walker Ltd, a designer and manufacturer of industrial electric boilers, for approximately £1.85 million. The acquisition strengthens SDI’s presence in the fast-growing electric boiler sector, driven by increasing regulatory demand for sustainable energy solutions.

Strategic Acquisition for Industrial & Scientific Growth

Collins Walker, known for its expertise in bespoke steam and hot water systems, will join SDI’s Industrial & Scientific Products division. The company serves blue-chip customers globally across sectors such as healthcare, industrial processing, brewing, distillation, and commercial heating. With the industrial boiler market valued at $11 billion and a growing shift towards electric solutions, this acquisition provides SDI with an opportunity to capitalize on sustainable energy trends.

Integration with Applied Thermal Control

To maximize operational efficiencies, Collins Walker will be integrated into SDI’s portfolio company, Applied Thermal Control (ATC). This move aims to merge back-office functions, increase manufacturing capacity, and enhance sales performance. Additionally, synergies with LTE Scientific, which uses electric boilers in its autoclave product line.

Financial and Growth Prospects

For the financial year ending March 31, 2024, Collins Walker reported £0.94 million in revenue and £0.31 million in EBIT (unaudited). The acquisition is expected to be earnings-enhancing in the first full year post-acquisition, with potential for further growth and margin expansion through operational integration and market demand.