discoverIE Group (LSE:DSCV) agreed to acquire a 90% interest in 3Gmetalworx for US$67.5m (£50m) in cash on a debt-free, cash-free basis.
The purchase will be funded from the Group's existing debt facilities and 3G management will retain 10% subject to put/call options exercisable between the third and fifth anniversaries, after which discoverIE will own 100%.
3Gmetalworx, founded in 1994, designs and manufactures electromagnetic shielding and thermal management products and has production and sales sites in Toronto, St. Petersburg (Florida) and Oceanside (California).
The business reported unaudited revenues of US$19.6m (£14.5m) for the 12 months to 31 December 2025 and an adjusted operating profit margin described as well ahead of discoverIE's medium-term target of 17%.
3G will join the Group's Connectivity operating unit within the Sensing & Connectivity division, retain its brand, and work alongside MTC to expand customer access in North America and Europe.
"The acquisition of 3G continues our strategy of building a growth-focused, international electronics group with strong operating margins and cashflow, and will be accretive to both the Group's adjusted earnings and operating margin," Nick Jefferies, Group Chief Executive, said.
The deal is subject to regulatory approvals with completion expected in the next few months and proforma consensus gearing is expected to rise from 1.7x to 2.2x at 31 March and fall to c.1.8x by the year end.
