SDI Group Expands Aerospace Footprint with PRP Optoelectronics Acquisition; Stock Gains

SDI Group (LON: SDI), a specialist in lab equipment and industrial sensors, has announced the acquisition of PRP Optoelectronics Ltd for £9.3 million, signaling a strategic entry into the lucrative avionics market.

The markets reacted positively to the news, with SDI shares climbing over 3%.

The acquisition of PRP, a designer and manufacturer of high-performance microLEDs for the avionics, defense, and industrial sectors, is expected to be earnings-enhancing in its first full year of ownership.

PRP's products are integral components in programs like the Eurofighter Typhoon, F-16, and F-22 Raptor, providing SDI with long-term revenue visibility and a stable, blue-chip customer base.

PRP's financial performance for the year ended December 31, 2025, showcased revenues of £5.99 million and EBIT of £1.54 million, with net assets of £4.43 million including cash. This acquisition not only expands SDI's footprint into the aerospace industry but also strengthens its product offering with PRP's LED micro-displays and UV purification products, complementing SDI's existing Graticules Optics and MPB Industries divisions.

The integration of PRP into SDI's Industrial & Scientific Sensors division is expected to drive further penetration into the aerospace sector. The deal aligns with SDI's buy-and-build growth strategy, focusing on companies with specialized, high-margin products.

Key Acquisition Drivers:

• Strategic Sector Entry: Access to the high-growth, resilient aerospace and defense markets.
• Product Synergies: Complementary product offerings enhancing SDI's existing portfolio.
• Revenue Visibility: Long-term agreements with a stable, blue-chip customer base.

Stephen Brown, CEO of SDI Group, stated: “The acquisition of PRP is a significant milestone for SDI, marking our entry into the avionics markets… PRP is a profitable business, with strong revenue visibility and an international customer base which meets our key acquisition criteria.” This statement reinforces the company’s commitment to strategic expansion and earnings growth.

The acquisition was funded through a combination of cash and debt, with £11.3 million paid immediately and deferred consideration of up to £0.9 million, subject to working capital adjustments.

SDI utilized its revolving credit facility with HSBC UK Bank, including an exercised accordion option, to finance the deal. As of January 31, 2026, the Group had cash of approximately £1.1 million and bank debt of £19.4 million.