Business
Acquisition of 2J Antennas Group
Acquisition of 2J Antennas Group.
About this update from Discoverie Group Plc
[{"type":"text","content":"\n\n\n\n7.00am, 13 September 2023\n \n \ndiscoverIE Group plc\n \nAcquisition of 2J Antennas Group\n \ndiscoverIE Group plc (LSE: DSCV, \"discoverIE\" or the \"Group\"), a leading international designer and manufacturer of customised electronics to industry, today announces the acquisition of 2J Antennas Group (\"2J\"), a Slovakian-based designer and manufacturer of antennas, for a cash consideration of €52.5m (£45.0m) on a debt free, cash free basis, before expenses, which will be funded from the Group's existing debt facilities.\n \nFounded in 2002, 2J is a leading designer and manufacturer of high performance antennas for industrial electronic connectivity applications that are closely aligned with the Group's sustainability-linked target growth markets. 2J, which was owned by management1 who will continue with the business, is based in Bardejov, Slovakia with subsidiaries in the US and UK, selling into more than 50 countries and has a long track record of profitable growth at operating margins significantly higher than the Group average.\n \n2J will become part of the Sensing & Connectivity division and form a new technology cluster with the Group's existing antenna business, Antenova, creating a leading platform in the long-term growth, high performance, industrial wireless connectivity market. With highly complementary products, both businesses will retain their distinct brand identities, under common expanded leadership, and will be integrated over time onto a common infrastructure. This combination represents an attractive opportunity for the Group to accelerate growth in the market for wireless connectivity in industrial applications, an area set to grow strongly driven by application areas such as the Industrial Internet of Things (IIoT), robotics and artificial intelligence (AI) controlled industrial systems that require dependable wireless communication to function.\n \nFor the year ended 31 December 2022, 2J reported revenues of €18.1m (£15.5m), pre-tax profit of €4.4m (£3.8m), underlying operating profit of €3.7m (£3.2m) and a 21% underlying operating margin. Gross assets at 31 December 2022 were €8.1m (£6.9m). Following a current year of normalising customer inventories, 2J is expected to continue its strong organic growth enhanced by access to discoverIE's wider industrial c...