Customised electronics manufacturer Discoverie Group said on Tuesday that it had sold its custom supply distribution business for £50.0m.
Discoverie disposed of Acal BFi to H2 Equity Partners on a debt-free, cash-free basis and will receive an upfront payment of £45.0m in cash, as well as a £5.0m deferred consideration.
Sale proceeds will be used to reduce the group’s net debt and progress its design and manufacturing growth strategy.
Chief executive Nick Jefferies said: “The group has developed significantly in recent years, with a substantial and higher growth design and manufacturing business becoming the core of operations.
“The sale of Acal BFi concludes the group’s exit from the business of distribution, with Discoverie becoming solely a global designer and manufacturer of customised electronics with higher operating margins, and provides additional resources to invest further in our growth.”
As of 0845 GMT, Discoverie shares were up 0.96% at 1,056.0p.
