Fri, 06 Jun 2025 | BUSINESS SALE
Severn Thermal Solutions, a Gloucestershire-based business that makes and designs advanced furnaces, has been acquired by a listed buy-and-build group in a deal worth £4.75 million.
Based in Dursley, Severn Thermal Solutions’ furnaces are used in sectors including aerospace, nuclear and semiconductors. The firm works with businesses that require advanced material testing and processing for niche scientific products.
The company’s systems are capable of reaching temperatures of over 3000°C or close to absolute zero. The acquisition provides SDI Group with an expansion into the controlled environment market, as well as access to a global, blue-chip customer base.
Cambridge-headquartered SDI Group Plc is a buy-and-build specialist accruing a portfolio of small and medium-sized businesses with specialist industrial and scientific products. The group targets businesses within growth sector niches that help to solve specific customer challenges. SDI Group specialises in acquiring and developing designers and manufacturers of specialist products utilised in lab equipment and industrial and scientific sensors.
Discussing the group’s latest acquisition, SDI Chief Executive Stephen Brown said: "Severn is a growing, profitable business, aligning with our key investment criteria of targeting scientific and industrial niche markets with global reach. Severn benefits from a strong, experienced management team who will remain in place, maintaining its sustainable sales pipeline, supported by significant international exposure.”
"We are excited by the prospects for this acquisition, both as a standalone entity and in the cross-sell opportunities to other businesses across the group. We continue to pursue our acquisitive growth strategy alongside our organic growth programme."
In the year to September 30 2024, Severn Thermal Solutions reported turnover of £2.42 million and adjusted EBIT of around £880,000 (adjusted to reflect the company’s cost base as part of the enlarged group), as well as reported EBIT of £1.06 million (all unaudited).
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