7.00am, 16
January 2025
discoverIE Group plc
Acquisition of Burster
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 the Burster Group
("Burster"), a German-based designer and manufacturer of specialist
sensors, for an initial cash consideration of €30.6m (£25.9m) on a
debt free, cash free basis, before expenses, which will be funded
from the Group's existing debt facilities. In addition, an earn-out
of up to €12.4m (£10.5m) will be payable subject to Burster
achieving certain financial performance conditions in its year
ending 31 December 2025.
Founded in 1961, Burster
produces specialist sensors including
precision load cells, torque sensors, displacement and pressure
sensors, and electronic measurement instruments for markets closely aligned with the Group's target markets.
It benefits from a low customer concentration and sells into c.60
countries. International markets make up c.40% of sales, notably
the rest of Europe, Asia and North America.
Burster, under its existing ongoing
management, will join the Group's Sensing cluster within the
Sensing & Connectivity division. Retaining its distinct brand
identity, the business will benefit from access to the Group's
broad customer base and the cluster's specialist international
sensor sales, production and engineering capabilities, with a view
to expanding both international and domestic sales. The Sensing
cluster, which includes six other businesses, is a leading platform
in the long-term growth, high performance, custom sensing market,
which is driven by application areas such as the Industrial
Internet of Things (IIoT), medical equipment, robotics and
artificial intelligence (AI).
Burster has a strong track record,
with unaudited revenues for the year ended 31 December 2024 of
c.€18m (£15m), and an underlying operating profit margin that is
above discoverIE's medium-term target of 15%.
This acquisition will be accretive
to underlying earnings and underlying operating margin from 1 April
2025. Following this acquisition, the Group's consensus
gearing1 at 31 March 2025 increases from 1.25x to 1.6x,
well within the Group's target range of 1.5x to 2x. The pipeline of
acquisition opportunities in development remains strong.
Nick Jefferies, Group Chief
Executive of discoverIE plc, said:
"The Group entered the second half
with c.£70m of capacity for acquisitions and the acquisition of
Burster continues our strategy of building a differentiated,
international, growth-focused electronics group with stronger
operating margins. The transaction brings another high-quality
business into discoverIE with strong alignment to our target
markets, which is accretive to both underlying earnings and Group
margin.
Burster has an excellent portfolio
that is highly complementary to our existing product suite and is a
great addition to our sensor cluster. We warmly welcome the Burster
team into the discoverIE Group and look forward to working with
them."
Matthias Burster, Managing Director
of Burster, said:
"Burster is excited to join the
discoverIE Group to lead the business into the future while
building on its strong heritage and reputation in the marketplace.
Our commitment to customers and the delivery of cutting-edge sensor
technology, automation measuring electronics and over 60 years of
experience in the field of precision measuring and calibration
equipment under the Burster brand remains unchanged. discoverIE's
sensor cluster opens up many new opportunities for international
growth. discoverIE's dedication to its portfolio companies is
exceptional, and we look forward to our next chapter."
For further information please
contact:
discoverIE Group plc
01483 544 500
Nick Jefferies
Group Chief Executive
Simon Gibbins
Group Finance Director
Lili Huang
Head of Investor Relations
Burson
Buchanan
020 7466 5000
Chris Lane, Toto Berger, Jack
Devoy
discoverIE@buchanan.uk.com
Notes
1. Gearing
ratio is defined as net debt divided by underlying EBITDA
(annualised for acquisitions, excluding IFRS16). Gearing reported
at 30 September 2024 was 1.45x with consensus gearing at 31 March
2025 of 1.25x.
2.
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 an
international group of businesses that design and manufacture
innovative 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 achieve organic growth that is well
ahead of GDP and to supplement that with complementary
acquisitions. The Group is committed to reducing the impact of its
operations on the environment in order to reach net zero. With its
key markets aligned with a sustainable future, the Group has been
awarded an ESG "AA" rating by MSCI and is Regional (Europe) Top
Rated by Sustainalytics.
The Group employs c.4,500 people
across 20 countries with its principal operating units located in
Continental 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.