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LONDON (Alliance News) - Volex PLC said Tuesday its acquired cable assembly manufacturing peer GTK Ltd for GBP14.3 million in a cash and shares deal from YFM Equity Partners LLP.
Volex will acquire Basingstoke, Hampshire-based GTK for GBP12.5 million in cash with the remainder settled by the issue of 2.1 million shares in the firm.
Shares in Volex were 2.5% higher at 90.20 pence on Tuesday.
For the year ended July, GTK - which operates in the UK, Romania and Taiwan - generated operating profit of GBP1.7 million on revenue of GBP15.8 million. Over the last three years, revenue has increased at an average annual growth rate of 14%.
For comparison, for the year ended April 1, Volex itself generated USD8.8 million operating profit on revenue of USD322.4 million.
"This acquisition, which is immediately accretive to our earnings per share, represents an important next step in expanding Volex's market-leading cable assemblies division," Volex Executive Chairman Nat Rothschild said.
"Furthermore," Rothschild added, "GTK's business introduces important new capabilities to our group, and brings new customer relationships, a highly skilled European-based sales and engineering team, and innovative new products. In addition, I am very pleased that Volex is back manufacturing in the UK after a gap of over 10 years."
