DiscoverIE Company Research (DSCV)

discoverIE has announced the acquisition of 90% of 3Gmetalworx (3G), a North American designer and manufacturer of electromagnetic shielding products for the electronics industry. This is the second recent acquisition focused on the security and defence market, after the Trival acquisition in April. The company is paying $67.5m/£50.0m in cash on a debt free, cash free basis, funded from existing debt facilities. The acquisition is subject to regulatory approvals in the US and Canada with completion expected in the next few months. The deal is expected to be immediately accretive to adjusted earnings and operating margin; we maintain our forecasts pending final completion.