(Alliance News) - XP Power Ltd said on Monday that it had acquired FuG Elektronik GmbH and Guth High Voltage GmbH from Dr Simon Consulting GmbH for a cash consideration of EUR39 million.
The Reading, England-based power control systems company said the acquisition was funded using its existing debt facilities.
XP Power said the acquisition is "highly complementary" to its existing high voltage offering, bringing new technology and technical capability to the company.
The company expects the acquisition to be earnings enhancing in 2022. XP Power also expects that the acquisition will be additive to the company's margins and deliver a post-tax return on invested capital in excess of the group's weighted average cost of capital.
XP Power added that the purchase will strengthen its position in Germany which it describes as the largest market for power solutions in Europe.
FuG Elektronik and Guth High Voltage anticipate revenue of EUR18 million and adjusted earnings before interest, tax, depreciation and amortisation of EUR4.5 million in 2021.
Shares in XP Power were up 5.9% at 4,750.00 pence on Monday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Xp Power (XPP)