Volex Share News (VLX)

(Sharecast News) - Volex, a provider of cable assemblies and power cords, has agreed to buy Hong Kong-based Ta Hsing for up to $5.5m in cash.Ta Hsing currently supplies power cables to Volex and other customers from its main manufacturing site in Shenzhen, where Volex also has a factory.Girish Gopinath, chief financial officer of Volex's power cord division, said: "The acquisition marks an important step in our development from an assembler of power products reliant on third parties for critical components to a more vertically integrated and efficient producer. In addition, it will help us bridge gaps in capabilities, services and footprint."Initially, the Shenzhen facility will serve as our extrusion centre and bring significant innovation and development capability, but the acquisition also brings on board expertise that could, in the longer term, allow us to add additional extrusion capabilities at other sites where we operate, all to the benefit of our customers."At 1315 BST, the shares were up 1.3% at 96.25p.