Oxford Instruments acquires Link Analytical
Oxford Instruments plc announced the acquisition of the business and assets of Link Analytical AB from Anna Otterstrom, the current owner/manager.
Link's primary activity is the distribution and after-sales support of Oxford Instruments NanoAnalysis equipment in Scandinavia. The acquisition will also provide the Group with opportunities to distribute complementary analytical instruments on behalf of a number of third party manufacturers in the region.
The consideration is an initial cash payment of £0.6m with a cash earn-out of up to £0.6m payable over three years should the business meet specific sales growth targets.
For the year ended 31 December 2007, Link reported a profit before tax of £0.5m. However, this profit included a number of one off contracts and provision releases that are not expected to be repeated. At 31 December 2007 gross assets were £1.7m. It is expected that the acquisition will be earnings enhancing in its first full year.
Jonathan Flint, Chief Executive of Oxford Instruments plc, said: The acquisition of Link Analytical is consistent with our five year strategy, which we commenced in 2006, to double the size of the Group and improve EBIT margins by 10 percentage points. We have now established an improved route to supply our customers in Scandinavia as well as further growth opportunities.
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