Scidev Ltd - SciDev makes strategic ProSol Australia acquisition
Scidev Ltd (ASX:SDV)

SciDev makes strategic ProSol Australia acquisition

Published Oct 22, 2019

What happened?

What's Happened?

SciDev have made a strategic $1.9M acquisition of ProSol Australia, which is a bespoke engineering and chemistry company that provides services to the mining and water treatment industries in NSW.

Why is it a Strategic Acquistion?

The target market of ProSol Australia, which is the provision of tailings engineering and process chemistry to mining and water treatment industries in NSW, is also a target market for SciDev's OptiFlox technology. Thus, this will lead to greater market penetration for SciDev. In addition, SciDev is retaining key staff from the ProSol Australia business. This includes ProSol Australia Director Ben Gill with 18 years’ experience who will be joining the SciDev management team and engineer Terry McHugh who will join as a Technical Account Manager.

What are the benefits?

Not only will the ProSol Australia staff become a valuable part of the SciDev team, SciDev will also be able to leverage Nuoer Group's manufacturing capabilities to improve ProSol Australia's profit margins. The ProSol Australia business is expected to generate between A$2-$4m in revenues per year.

What were the terms?

The acquisition was funded via a combination of 55% cash and 45% ordinary shares across several tranches, which is shown below:


Managing Director's summary

Lewis Utting Managing Director of Scidev Ltd has provided a statement.
Lewis Utting
Lewis Utting
Managing Director, Scidev Ltd

“ProSol have an outstanding reputation in the industry and have an excellent customer base. The transition of the ProSol supply chain to SciDev will allow the company to utilise our strategic joint venture with Nuoer manufacturing, delivering additional margin upside on the existing ProSol revenue model. In addition, the acquisition provides the opportunity for greater market penetration of SciDev’s MaxiFlox® technology amongst ProSol’s existing customer base. Both Ben and Terry will slot straight into the SciDev team strengthening our ability to continue to execute on the rapidly growing SciDev business development pipeline."

Analysts thoughts

SmallCapInsider from Mawson Graham provides perspective on this recent announcement.
Written by SmallCapInsider
Published Oct 22, 2019

This acquisition is highly complimentary to the existing SciDev business and will see its team strengthened during a time of expansion. Furthermore, although no detailed financial figures for the ProSol Australia business have been provided in this announcement, the acquisition price of A$1.9m relative to the expected revenues of A$2m-A$4m appears attractive on the surface, especially if margins are expected to improve at ProSol Australia.

Download Announcement

View this announcement as well as our full profile on the company.


Share your thoughts about this announcement...

Similar articles
SciDev’s (ASX:SDV) soon to be subsidiary Haldon Industries awarded contract with Sydney’s Gateway Road Project
What has happened? SciDev (ASX:SDV) announced that its to be acquired subsidiary Haldon Industries has been awarded the...
5 months ago
SciDev (ASX:SDV) Cash Receipts Up +194% PCP in Latest Quarterly Activities Report
What has happened? Today SciDev (ASX:SDV) announced their quarterly activities report for the period ending 31 March 202...
6 months ago
SciDev (ASX:SDV) Extends its Presence in the Water and PFAS Sector Through the Haldon Industries Acquisition
What has happened? SciDev (ASX:SDV) today announced that they have entered a Business Sale Agreement to acquire the busi...
6 months ago
Around the web
STAR Water plans to tap growing ESG sentiment with its stormwater recycling tech
With increasing pressure on governments globally to address climate related issues, investor appetit...
Scidev Ltd - SciDev’s (ASX:SDV) soon to be subsidiary Haldon Industries awarded contract with Sydney’s Gateway Road Project
Our summary of Scidev Ltd's recent announcement What has happened? SciDev (ASX:SDV) announced that i...
Scidev Ltd - SciDev (ASX:SDV) announces cash receipts up 194% PCP in the latest quarterly activities report
Our summary of Scidev Ltd's recent announcement What has happened? Today SciDev (ASX:SDV) announced...
Powered by  
  • Company
    Scidev Ltd
  • Website
  • Sector
  • Industry
    Commodity Chemicals
  • Code
View Scidev Ltd's Profile

How do I invest?

Considering investing in Scidev Ltd?
Here's how to get started.
Low Cost Brokerage ASX Cheapest ASX Trading Platform
  1. 1

    Create account

    Open an account with an online broker of your choice. If you do not have an existing broker, consider Mawson Graham's A$9.50 flat fee platform.

    Sign up now »
  2. 2

    Search for ASX:SDV

    On your online investment platform search for the stock ticker code ASX:SDV to bring up the company's shares.

  3. 3

    Buy shares

    Place your order however you wish. If you need advice on buying or selling, you should seek the assistance of a full service financial adviser experienced in small cap equities.