Electronics manufacturer Discoverie looks to break into US market with acquisition
London listed electronics manufacturer Discoverie has made its first move into the United States with the £14.8m buyout of US parts maker Hobart.
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The parts supplier for electronic devices announced the acquisition alongside the buy of another firm in the UK, as well as a £29m fundraising round via a share placing.
Discoverie makes parts for renewable energy, transportation, medical equipment and industrial wireless connections. Hobart makes custom transformers, inductors and magnetic components.
The acquisition marks the small cap listed firm’s first inroads into the US market. Discoverie chief executive Nick Jefferies told Morning Wire: “They have a customer base that is almost entirely in the USA. That brings us revenue and opportunity to sell more in the US market.
“Allied to that, they have manufacturing in Mexico, which enables us to make products on the continent in the Americas rather than making it in India or China which we currently do, and shipping it all around the world. It makes a more efficient supply chain for us.”
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Jefferies added the £29m placing would help fund future acquisitions. He said: “We’re looking for more businesses that are based in central western Europe, but increasingly in North America, that design niche, custom electronic components that can be sold into growth applications which are used worldwide. So watch this space.”