SDI buys PRP Optoelectronics for £9.3m

News: LEDs SDI Group plc (which acquires and develops companies that design and manufacture specialist products for use in lab equipment, industrial & scientific sensors and industrial & scientific products) has acquired PRP Optoelectronics Ltd of Swindon, UK for £9.3m, excluding £2.8m of acquired net cash. The total consideration comprises £11.3m in cash paid on completion; and £0.8–0.9m of deferred cash, subject to working capital completion accounts (to be paid to the sellers after completion). The cash consideration will be funded from SDI’s revolving credit facility with HSBC UK Bank. As at end-January, SDI had cash of about £1.1m, bank debt of £19.4m and £5.5m of undrawn bank facility. In adition, it exercised £6m of its accordion option in early February, with £9m remaining unexercised. With 33 staff, PRP designs and manufactures custom high-performance micro-LEDs, LED light engines and monolithic LED arrays, delivering precision illumination spanning infrared through to ultraviolet, for applications in the avionics, defence and industrial sectors. With complete in-house capabilities (from semiconductor wafer processing to final system assembly), PRP can deliver bespoke solutions for demanding applications such as avionics displays, thermal imaging and water and air purification systems. For full-year 2025, revenue was £5.99m and EBIT was £1.54m. Net assets (including cash) is £4.43m. The firm serves a critical and technical niche, particularly in the aerospace & defence markets, where its products are essential components in programs including the Eurofighter Typhoon, General Dynamics F-16 and Lockheed Martin F-22 Raptor. Supported by long-term agreements, there is said to be long-term revenue visibility, with a stable, blue-chip customer base and revenues primarily linked to overseas end-markets. PRP’s managing director Kevin Peart and technical director Sam Cox (the majority shareholders) will remain with the business in a full-time capacity. PRP will join the SDI Group’s Industrial & Scientific Sensors division, extending SDI’s footprint into the resilient and lucrative aerospace & defence sector. Also, PRP’s LED micro-displays for optical systems and UV purification products add a complementary offering to SDI, strengthening its footprint across the specialist end-markets occupied by both Graticules Optics and MPB Industries. “The acquisition of PRP is a significant milestone for SDI, marking our entry into the avionics markets. The business boasts a range of products in a very particular niche, which have applications across multiple sectors, including in aviation and on platforms including the General Dynamics F-16 and Airbus A320 among others,” notes SDI Group’s CEO Stephen Brown. “PRP is a profitable business, with strong revenue visibility and an international customer base which meets our key acquisition criteria.” LED product maker PRP Opto announces long-term strategic investment partnership with Veruth microLED www.prpopto.com www.sdigroup.com