discoverIE to sell its Acal BFi Distribution Business

The company has agreed to sell Acal BFi to H2 Equity Partners, for a total cash consideration of GBP 50 million, comprising an upfront payment of GBP 45 million, together with GBP 5 million of deferred consideration. The Transaction is subject to certain consultation requirements and regulatory approvals, with completion expected in the current financial year. discoverIE says that the proceeds will be used to reduce the group’s net debt and to progress the design and manufacturing growth strategy. For the year ended 31 March 2021 (FY21), Acal BFi reported revenues of GBP 148.7 million, profit before tax of GBP 4.0 million and gross assets of GBP 60.1 million. Acal BFi is a 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 leaves the group wholly focused on design and manufacturing, the principal driver of the group’s financial performance.