Business
Sale of Acal BFi Distribution Business
Sale of Acal BFi Distribution Business.
About this update from Discoverie Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7744R\n discoverIE Group plc\n 09 November 2021\n \n \n \n For Release:\n 7.00am, 9 November 2021\n \n \n \n discoverIE Group plc\n \n \n \n \n \n Sale of Acal BFi Distribution Business\n \n \n \n \n \n · \n \n Sale of Custom Supply distribution business, Acal BFi, for total cash consideration of £50m\n \n \n \n · \n \n Accelerates growth strategy with the Group now solely focused on the higher margin Design & Manufacturing (\"D&M\") division, the principal driver of the Group's financial performance\n \n \n \n · \n \n Increases exposure to structurally growing target markets and positively impacts operating margin\n \n \n \n · \n \n Proforma gearing reduces to 1.0x, leaving significant capacity for further acquisitions\n \n \n \n \n \n \n \n \n \n discoverIE Group plc (LSE: DSCV, \"discoverIE\", the \"Group\" or the \"Company\"),\n a leading international designer and manufacturer of customised electronics to industry\n , today announces the \n sale of Acal BFi (\"Acal BFi\"), the Group's electronic component distribution business. \n \n \n \n \n \n The Company has agreed to sell Acal BFi to H2 Equity Partners, for a total cash consideration of £50m, on a debt free, cash free basis, comprising an upfront payment of £45m, together with £5m of deferred consideration1 (the \"Transaction\"). The Transaction is subject to certain consultation requirements2 and regulatory approvals, with completion expected in the current financial year. Sale proceeds will be \n used to reduce the Group's net debt and to progress the design and manufacturing growth strategy. \n \n \n \n \n \n For the year ended 31 March 2021 (\"FY21\"), Acal BFi reported revenues of £148.7m, profit before tax of £4.0m and gross assets of £60.1m. The total consideration represents a multiple of approximately 7x pre-Covid average underlying operating profits. \n \n \n \n \n \n Acal BFi is a European specialist electronic components distributor, with operating companies in the UK, Germany, France, Italy, the Nordic region and Benelux and will continue under its existing management team, led by Paul Webster. Following the planned disposal of Vertec SA announced last month, the sale of Acal BFi concludes discoverIE's exit from its Custom Supply distribution business and leav...