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(Correcting that Volex generated USD9.1 million in underlying operating profit on revenue of USD319.6 million, not MC Electronics.)
LONDON (Alliance News) - Cable assembly maker Volex PLC said Thursday it was acquiring US cable peer MC Electronics LLC in an all-share deal worth up to GBP2.6 million.
Voles will acquire MC through the issue of 3.5 million shares, worth GBP2.6 million based on the share price of Volex on Thursday of 75.44 pence, up 0.1%.
The payment will be 3.0 million shares on completion. The remainder will be issued by the end of 2018 depending on MC achieving revenue targets for its year ending November 3.
MC - which has operations in California and Juarez, Mexico - is a portfolio company managed by Nova Capital Management.
For its year ended October 28, MC reported a pre-exceptional operating loss of USD200,000 on revenue of USD19.1 million.
For its year ended April 2 2017 Volex generated USD9.1 million in underlying operating profit on revenue of USD319.6 million.
"This acquisition represents an important first step in expanding Volex's presence in the cable assembly business," Volex Executive Chairman Nat Rothschild said. "MC brings new customer relationships to Volex and also the opportunity to integrate our Mexican operations over time, to improve our profitability and competitiveness."
