Light Science Technologies Holdings (LSTH), the Derbyshire-based controlled environment agriculture (CEA) technology and contract electronics manufacturing (CEM) group, has acquired Spalding-based Tomtech in a £500,000 deal.
Tomtech designs, manufactures and installs monitoring and control systems for commercial greenhouses and polytunnels and currently has over 160 live customers – including commercial growers in agriculture, horticulture and floriculture segments as well as universities and public authorities.
It has traded profitably for the last four years. For the year ended 31 December 2022, Tomtech reported unaudited profits before tax of £79,000 on sales of £680,000, of which £49,000 was recurring revenue. As at 31 December 2022, Tomtech had net assets of £145,000, including £141,000 in cash.
Simon Deacon, Chief Executive Officer of LSTH, said: “We are delighted to have completed our first acquisition since joining AIM. Tomtech has an excellent team and reputation with its clients and we believe their range of products and technology know-how will further enhance our industry reach and standing.
“Bringing Tomtech’s 35 years of experience into the Group’s CEA division enables us to provide an important turnkey solution to our customers, providing the technology they need to control the cost of growing, increasing yields and growing all year round.
“Acquiring Tomtech enhances our ability as a group to take our products worldwide, offering a full range of products, which sets us apart from our competitors in this very important time for the CEA market where we are seeing extreme weather patterns worldwide affecting our food security.
“Bringing Tomtech into the Group will further strengthen our position. The team’s added understanding of the requirements of growers in all areas of the Industry from glasshouses and polytunnels to hybrid growing environments in vertical growing, will be a big asset to the enlarged Group.
“We are looking forward to working with the team to strengthen our CEA division not just in revenue terms, but also the additional support to grow our partnerships around the world and to broaden our reach.”
All Tomtech employees will continue to be employed by the group following the acquisition.
