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(Alliance News) - discoverIE Group PLC on Tuesday announced the sale of its electronic component distribution business Acal BFi for GBP50.0 million.
The designer, supplier and manufacturer of customised electronics will sell Acal BFi to the investment firm H2 Equity Partners for a cash consideration of GBP50.0 million on a debt and cash-free basis.
Of the GBP50.0 million, GBP45.0 million is to be paid upfront, "with GBP5.0 million of deferred consideration."
discoverIE states that the transaction is still dependent on consultation requirements and regulatory approvals but expects it to be completed in the current financial year.
"Sale proceeds will be used to reduce the group's net debt and to progress the design and manufacturing growth strategy," discoverIE said.
In the group's 2021 financial year ended March 31, 2021, its design and manufacturing divisions made 65% of group revenue and 87% of underlying profit.
"The group has developed significantly in recent years, with a substantial and higher growth design and manufacturing business becoming the core of operations. The sale of Acal BFi concludes the group's exit from the business of distribution, with discoverIE becoming solely a global designer and manufacturer of customised electronics with higher operating margins, and provides additional resources to invest further in our growth," Chief Executive Nick Jeffries commented.
Shares were up 0.8% and 1,038.00 pence on Tuesday afternoon in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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