REG - Volex PLC - Acquisition of MC Electronics LLC

VolexAnnouncement

26/04/2018 07:05

2018-04-26T06:00:58.908Zreuters.comtag:reuters.com,2018-04-26:newsml_RSZ1574Ma:13TXT
This file is provided for EAP sample purposes only; it's structure and detail are subject to change, and should not be used as a definitive reference for actual development and processing.2018-04-26T06:00:58.908Z2018-04-26T06:00:58.908Z____UCDP:parsn_lse_10.54.4.69_1.2.37102:2019-05-26T06:00:58.908Z3RSZ1574MaREG - Volex PLC  - Acquisition of MC Electronics LLCElectrical Components & Equipment (NEC) (TRBC level 5)Industrials (TRBC level 1)Industrial Goods (TRBC level 2)Machinery, Tools, Heavy Vehicles, Trains & Ships (TRBC level 3)Electrical Components & Equipment (TRBC level 4)LEGACY: Industrials (TRBC)LEGACY: Industrial Goods (TRBC)LEGACY: Machinery, Equipment & Components (TRBC)LEGACY: Electrical Components & Equipment (TRBC)Western EuropeUnited KingdomEuropeSuggested SourcesNews AnnouncementsRegulatory Corporate News AnnouncementsCompany NewsEurope daily earnings hits & missesVolex PLC








RNS Number : 1574M
Volex PLC
26 April 2018
 

Acquisition of MC Electronics LLC
 
26 April 2018
 
Volex plc ("Volex" or the "Company"), the global provider of cable assemblies, is pleased to announce the proposed acquisition of MC Electronics LLC ("MC"), a North-American based manufacturer of customised complex medical and industrial cables, wire harnesses and electro-mechanical assemblies for medical and industrial applications. MC is a portfolio company managed by Nova Capital Management.
 
MC, which has operations in California and Juarez, Mexico, produces customised cables, wire harnesses and electro-mechanical assemblies for over 40 customers in the North American market.
 
For the year ended 28 October 2017 MC reported unaudited revenues of $19.1 million and a pre-exceptional operating loss of $0.2million.
 
Volex proposes to acquire all of the issued and outstanding units of MC and all of the outstanding shareholder indebtedness owed by MC for a maximum consideration of 3.5million new ordinary shares of 25 pence each in the Company, of which 3.0million will be issued on completion and the balance issued by the end of 2018, subject to MC achieving certain revenue targets for the year ending 3 November 2018.
 
The Company is also exploring a number of acquisition opportunities and financing alternatives in line with its strategy of consolidating the highly fragmented cable assembly industry. In particular the Company is in advanced negotiations with another significant acquisition target and shareholders will be updated in due course.
 
Nat Rothschild, Executive Chairman of Volex, commented:
 
"This acquisition represents an important first step in expanding Volex's presence in the cable assembly business. MC brings new customer relationships to Volex and also the opportunity to integrate our Mexican operations over time, to improve our profitability and competitiveness."
 
The transaction is conditional upon admission to trading on AIM of the 3.0 million new ordinary shares to be issued on completion and is also subject to certain other customary closing conditions. A further announcement will be issued when these conditions have been satisfied.
 
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014.
 
 
 
Enquiries
For further information please contact: 




 
    Volex plc 


 
Tel: 020 8017 3240 




    Nat Rothschild, Executive Chairman 




    Daren Morris, CFO 




 
Liberum
(Nominated Adviser & Broker)       Tel: 0203 100 2222
Steve Pearce
Euan Brown
 
 



This information is provided by RNS
The company news service from the London Stock Exchange
 
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