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                                                                           [email protected]

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

[email protected]

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.