discoverIE to acquire Hobart Electronics and Positek

Hobart is a US-based designer and manufacturer of custom transformers, inductors and magnetic components, which reported revenues of USD 13.0 million (GBP 10.0 million) for its year ended 31 December 2018, generating reported EBITDA of USD 2.1 million (GBP 1.6 million). The consideration for Hobart comprises an initial cash consideration of USD 15.2 million (GBP 11.7 million, and a further contingent cash consideration of up to USD 4.0 million which is subject to achieving ertain growth targets over the next three years. Positek is a UK-based designer and manufacturer of rugged, high accuracy linear, rotary, tilt and submersible sensors, supplying international markets, which reported revenues of GBP 1.5 million for its year ended 31 August 2018, generating underlying EBITDA of GBP 0.6 million. The consideration for Positek comprises an initial cash consideration of GBP 4.2m and another GBP 0.4 million if certain integration and profit targets are achieved in the next 18 months. These acquisitions expands the group’s international footprint and creates organic growth opportunities in target markets of renewable energy, transportation, medical and industrial connectivity. The acquisitions also expand regional manufacturing with production in Mexico, a press release reads. "The acquisitions of Hobart and Positek continue our strategy of building a higher margin, international Group that designs and manufactures customised electronics. Both companies have long-established track records of supplying high quality products into their respective markets. As part of the Group, both companies will gain access to our wider base of customers and with it, new sales opportunities, whilst discoverIE will gain access to efficiencies from manufacturing in Mexico and new cross-selling opportunities. We are delighted to welcome Hobart, Positek and all their employees into the Group," says Nick Jefferies, Group Chief Executive of discoverIE, in the release.