discoverIE Group PLC has made another bolt-on with the acquisition of circuit board specialist CDT for £5mln.
CDT designs and manufactures customised plastic enclosures for circuit boards, membrane keypads and associated electronic components and will be integrated into discoverIE’s Contour business.
"The acquisition will be immediately enhancing to group underlying earnings," discoverIE said in a statement.
"Proforma Group gearing at 31 March 2022 including the CDT acquisition is 0.7x, well below our target range of 1.5x to 2.0x," it added.
CDT's customers are in the medical, renewables, emergency vehicles and industrial sectors, with it generating revenues of £2.9mln in 2021, an underlying profit of £0.8mln and operating margins of 28%.
Nick Jefferies, discoverIE’s CEO added: "The acquisition of the CDT group continues our strategy of building a high-quality, higher-margin international group that designs and manufactures customised electronics.
"CDT will be integrated with our existing Contour business enabling more complex and integrated designs as well as providing CDT with access to our wider base of customers and with it, new sales opportunities.”