AIM-listed Judges Scientific, which designs and manufactures scientific instruments, set up Bordeaux Acquisition for the sole purpose of acquiring Deben.
According to a statement released by Sussex-based Judges, an additional payment will be made to reflect the working capital available in the business at completion.
Founded in 1987, Deben designs and produces microscope components used for products such as motor systems and digital imaging for electron microscopes.
Alex Hambro, chairman of Judges comments: ‘This is a profitable and cash generative business and we expect the transaction, which has not involved the issue of new equity, to be immediately earnings enhancing.’
The deal has been funded through a £2.4 million loan split into two components: one for the acquisition and one for land secured against Deben’s operating property.