Menzies LLP’s corporate finance team recently assisted BCMS in advising the shareholders of Geotek on the sale of the business to Judges Scientific plc, for a total consideration up to a maximum of £80m, plus excess cash.
The acquisition of Geotek is reportedly Judges Scientific plc’s largest-ever acquisition and the first to derive a “substantial” proportion of revenues from services. It also marks the group’s 20th acquisition since 2005.
Under the terms of the deal, Geotek’s managing director Tony Bosley will remain in post to drive the growth of the business forward. Meanwhile, Geotek’s founders (chairman Peter Schultheiss and service director Quentin Huggett) will enter into one-year service contracts.
Based in Daventry, Geotek specialises in designing and manufacturing high-resolution, non-destructive analysis of geological cores. It provides equipment and services to over 40 countries, generating in excess of 90% of its revenue from export markets.
The acquirer, Judges Scientific plc, is an AIM-quoted group specialising in the acquisition and development of a portfolio of scientific instrument businesses. The group’s companies are primarily UK-based with products sold worldwide to a range of markets.
This includes higher education institutions, the scientific communities, manufacturers and regulatory authorities.
Judges Scientific reportedly maintains a policy to selectively acquire businesses that generate sustainable profits and cash. Shareholder returns are created through the reduction of debt, payment of increasing dividends, and through organic growth.
Kevin Paget, corporate finance director at Menzies LLP, said: “Geotek is a renowned market leader in its field with an exceptional reputation. It was a pleasure to support BCMS and advise the shareholders of Geotek on this transaction.”