Cable specialist announces £15m acquisition
Warrington based cable firm Volex has announced it is to acquire a Slovakian firm in a deal worth £15m.
Volex makes cables for the telecoms industry, power tools, computers, lawnmowers, hedge trimmers and other consumer goods.
The firm has announced the acquisition of Silcotec Europe and has also announced a conditional placing to raise £36m through the issue of 48,000,000 new ordinary shares at 25 pence each.
The placing is being carried out to finance the acquisition of Silotec.
Silcotec manufacturers and sells cable harnesses and electronic sub-assemblies for the medical, telecommunications and computer industries.
It has 160 employees in a factory in Slovakia with customer service and finance personnel based in Ireland.
In 2016 Silcotec generated revenue of €17.8 million and EBIT of €3.1 million.
Nat Rothschild, executive chairman of Volex, said: “This acquisition is an important step in expanding our Cable Assembly activities in Europe.
“Silcotec is a well run business, providing high quality cables, assemblies and box-builds for the medical industry.
“In addition, following the fund raising, Volex will have a well capitalised balance sheet to allow for further investment in our business which will benefit our customers, employees and shareholders.”
Volex says is has been consolidating by acquiring smaller competitors so it can make savings in group-wide procurement and through more efficient sales and operations.
In April Volex announced the acquisition of MC Electronics LLC, an American based manufacturer of customised complex medical and industrial cables, wire harnesses and electro-mechanical assemblies for medical and industrial applications.