REG - discoverIE Group plc - Acquisition of 3Gmetalworx

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RNS Number : 8022E  discoverIE Group plc  19 May 2026

7.00am, 19 May 2026

 

 

discoverIE Group plc

 

Acquisition of 3Gmetalworx

 

North American acquisition with primary focus on security & defence market

 

discoverIE Group plc (LSE: DSCV, "discoverIE" or the "Group"), a leading
international designer and manufacturer of customised electronics to industry,
today announces the acquisition, of a 90% interest in 3Gmetalworx ("3G"), a
North American-based designer and manufacturer of electromagnetic shielding
products for the electronics industry.

 

The interest in 3G is being acquired for a cash consideration of US$67.5m
(£50.0m) on a debt free, cash free basis which will be funded from the
Group's existing debt facilities. 3G management, who retain a 10%((1))
interest, will remain in the business to deliver growth objectives into the
medium term. The acquisition supports our strategy of building a
differentiated, growth-focused electronics group by strengthening our North
American presence in attractive, long-term growth markets, such as security
and aerospace & defence.

 

Founded in 1994, 3G designs and manufactures electromagnetic shielding and
thermal management products for use in electronic equipment with its main
markets being aerospace & defence, commercial space satellite and
industrial. Demand for these products is growing rapidly as communication
needs continue to increase. The business has production and sales facilities
in Toronto, Canada and in the US in St. Petersburg (Florida) and Oceanside
(California).

 

3G will join the Group's Connectivity operating unit within the Sensing &
Connectivity division, retaining its distinct brand identity. It will work
alongside MTC, our existing European based electromagnetic shielding business,
which has achieved strong, consistent sales and profit growth since being
acquired in 2011. Other businesses in the Group will also benefit from access
to 3G's extensive customer base and sales channels, particularly in North
America.

 

The business has a strong financial track record, with unaudited revenues for
the 12 months ended 31 December 2025 of $19.6m (£14.5m) and an adjusted
operating profit margin that is well ahead of discoverIE's medium-term target
of 17%.

 

This acquisition is subject to receipt of regulatory approvals with completion
expected in the next few months. From completion, the acquisition will be
immediately accretive to the Group's adjusted earnings and operating margin.
The Group's proforma consensus gearing((2)) at 31 March 2026 will increase
from 1.7x to 2.2x and is expected to fall to c.1.8x by end of the current
financial year.

 

Nick Jefferies, Group Chief Executive of discoverIE, said:

 

"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. This transaction is discoverIE's second recent acquisition with a
primary focus on the security and defence market.

 

3G is an excellent business with a strong management team and growth
prospects. We welcome the team and look forward to working with them to build
our position in its products and markets both in North America and in Europe."

 

 

 

For further information please contact:

discoverIE Group
plc
            IR@discoverIEplc.com

 

Nick Jefferies                Group Chief Executive

Simon Gibbins              Group Finance Director

Lili Huang                      Head of Investor Relations

 

Burson
Buchanan
020 7466 5000

Jamie Hooper, Toto Berger

discoverIE@buchanan.uk.com

 

 

Notes

 

1.     The shares held by management are subject to put / call options
exercisable between the third and fifth anniversaries of the date of
completion. Once exercised, the Group will own 100% of the business.

 

2.     Gearing ratio is defined as net debt (excluding IFRS16) divided by
adjusted EBITDA (annualised for acquisitions). The Group's banking covenant is
3.5 times.

 

3.     The information contained within this announcement is deemed by the
Group to constitute inside information as stipulated under the Market Abuse
Regulation, Article 7 of EU Regulation 596/2014. Upon the publication of this
announcement via Regulatory Information Service, this inside information is
now considered to be in the public domain.

 

 

Notes to Editors:

 

About discoverIE Group plc

 

discoverIE Group plc is a leading international group of businesses that
design and manufacture customised electronic components for industrial
applications.

 

The Group provides application-specific components to original equipment
manufacturers ("OEMs") internationally through its two divisions, Magnetics
& Controls, and Sensing & Connectivity. By designing components that
meet customers' unique requirements, which are then manufactured and supplied
throughout the life of their production, a high level of repeating revenue is
generated with long-term, high quality customer relationships.

 

With a focus on key markets driven by structural growth, increasing electronic
content and sustainability, namely medical, electrification of transportation,
renewable energy, security and industrial automation & connectivity, the
Group aims to grow well ahead of GDP through the economic cycle and to
supplement that with complementary acquisitions, compounding growth. The Group
is committed to reducing the impact of its operations on the environment in
order to reach net zero.

 

The Group, which has made 30 acquisitions in the last 15 years, employs
c.4,600 people across 21 countries with its principal operating units located
in Mainland Europe, the UK, China, Sri Lanka, India and North America.

 

discoverIE is listed on the Main Market of the London Stock Exchange and is a
member of the FTSE 250, classified within the Electrical Components and
Equipment subsector.

 

 

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