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LONDON (Alliance News) - Science Group PLC on Wednesday said it has acquired the operating business and assets of Leatherhead Food International Ltd for GBP1.6 million.
Leatherhead, which provides scientific research, regulatory advice, market insights, testing and other services to the food and drink industry, reported pretax profit of about GBP100,000 on revenue of GBP8.8 million in 2013. It was founded in 1919 and has a customer base of more than 500 clients.
The deal does not include Leatherhead's freehold property. The acquisition has been made free of debt and defined benefit pension liabilities.
Leatherhead decided to look for an investment partner due to a cash flow shortfall and a "significant" legacy pension scheme deficit.
Science Group made the acquisition from Leatherhead's administrator.
"The Leatherhead operations will vacate the current premises and relocate to a new facility in the first half of 2016. This new facility will establish a hub for the Science Group's operations south of London, complementing the existing Harston, Cambridge facility," Science Group said.
Science Group said the acquisition complements the consumer market sector activities of Sagentia, its core science and technology development business, and Oakland Innovation, acquired in February 2015.
"Both of these businesses have an established presence with major food and drink companies and Science Group has seen increasing investment from this market sector in science-based services. The acquisition of the Leatherhead business, a very well established brand in the food and drink market, further strengthens the group's capabilities in this high profile and exciting industry," Science Group said.
Science Group shares were untraded at 137.25 pence on Wednesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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