(Sharecast News) - Electronic connector manufacturer LPA Group has conditionally agreed to acquire a product line from Amphenol that it says will complement its existing range.
LPA will purchase Amphenol's UK historic range of railway inter-carriage electrical connectors, replacing a ten year licensing agreement between the pair that was signed back in May 2021 that saw the former undertake the manufacture and supply of the latter's connectors to the UK rail aftermarket customer base, with the profits from the product line shared on a 50/50 basis.
The AIM-listed firm stated the acquisition enabled it to continue to manufacture and supply the railway inter-carriage electrical connectors direct to the customer and will now retain all associated profits.
Chief executive Paul Curtis said: "This is an excellent agreement for all parties, assisting both in their strategies of development and growth for the coming years. The aftercare market is a key focus for LPA and these products provide access to nearly 3,000 existing vehicles, to which we can offer our excellent levels of quality and support over the coming decade.
"This product line will support the group's delivery of FY23 results in line with existing Board expectations."
As of 0850 BST, LPA shares were up 1.80% at 85.0p.
Reporting by Iain Gilbert at Sharecast.com
Lpa (LPA)