XRF Scientific (ASX:XRF) has entered into a binding share purchase agreement to acquire the entirety of Labfit.
The acquisition is conditional upon fulfilling several conditions by Feb. 13, 2025, including due diligence and obtaining necessary third-party approvals.
Labfit, based in Bayswater, Western Australia, is an established manufacturer of carbon sulphur analysers, pH analysers, and laboratory weighing systems.
Once integrated, Labfit will operate from XRF's existing factory in Balcatta, Western Australia.
For the fiscal years 2023 and 2024, Labfit reported an average unaudited revenue of $1.5 million and a profit before tax of $200,000.
The acquisition, considered low risk, will benefit XRF with complementary products, adding the potential for revenue growth via XRF's distribution network.
The acquisition is valued at $1.2 million, with a portion payable in XRF shares.
Commenting on the acquisition, Vance Stazzonelli, Managing Director of XRF Scientific, stated, "The addition of Labfit will diversify XRF's revenue into sectors such as water, beverage, environmental, and agriculture."
The transaction aims to be finalised by Dec. 20, subject to the satisfaction of the necessary conditions precedent.
XRF Scientific is an ASX-listed company that manufactures and sells chemicals, equipment and accessories to production mines, construction material companies and commercial analytical laboratories, in Australia and overseas.
At the time of reporting, XRF Scientific's share price was $1.62.