REG-XP Power Ltd: Acquisition(s) <Origin Href="QuoteRef">XPP.L</Origin>

XP PowerAnnouncement

02/10/2017 07:00

2 October 2017

XP Power Limited

(“XP Power” or “the Company” or “the Group”)

Acquisition of Comdel

XP Power, a world-leading developer and manufacturer of critical power control
solutions for the electronics industry, announces that it has acquired the
business and assets of Comdel Inc. (“Comdel”), a designer and
manufacturer of radio frequency (“RF”) power supplies (the
“Acquisition”).

Total consideration of US$23.0 million (£17.0 million) was paid in cash on
completion.  The Acquisition is on a debt and cash free basis and was funded
with a new revolving credit facility of US$40.0 million with a US$20.0 million
additional accordion option. The new facility is in place to assist the
company’s inorganic growth strategy. 

Comdel is based in Massachusetts, USA, and supplies the industrial and
technology sectors with a range of standard, modified and custom high power RF
power conversion products.  Comdel typically supplies RF power supplies to
the semiconductor, thin film, photovoltaics, and induction heating industries.
In the fiscal year ended 31 December 2016, Comdel recorded sales of US$16.5
million (£13.0 million), profit before tax of $1.8 million (£1.4 million)
and had gross assets at the year end of $10.9 million (£8.5 million). The
Acquisition is expected to be enhancing to the Company’s earnings per share
in 2018*.

Comdel and XP Power share several customers, and while there is no direct
overlap in product lines, the power supply solutions of the two companies are
considered highly complementary. Comdel’s products and engineering
capabilities will enhance the Group’s ability to implement its strategy of
winning a greater share of business from its largest customers by achieving
wider vertical penetration of key accounts. As well as a product offering
suitable for an array of applications used by some of XP Power’s existing
customer base, Comdel will also bring a number of new customers to the Group.

Scott Johnson, Chief Executive Officer of Comdel, will remain with the
business and head up XP Power’s newly formed RF Power division.

Duncan Penny, Chief Executive of XP Power, said:

"We are delighted to welcome Comdel to the XP Power Group and are excited
about the opportunity of offering its complementary product range through our
global sales channel. The Acquisition will enable us to provide our existing
customers with a comprehensive product offering in RF power, a market segment
with robust demand fundamentals but one in which we did not previously
specialise.  We are confident that Comdel will have a very successful future
as part of XP Power."

* This statement does not constitute a profit forecast

Ends

Enquiries:

XP Power

Duncan Penny, Chief Executive Officer +44 (0)118 976 5086

Jonathan Rhodes, Finance Director +44 (0)118 976 5074

Citigate Dewe Rogerson +44 (0)20 7638 9571

Kevin Smith/Jos Bieneman

Note to editors

XP Power is a leading international provider of essential power control
solutions.  Power direct from the electricity grid is unsuitable for the
equipment which it supplies.  XP Power designs and manufactures power
converters – components which convert power into the right form for our
individual customers’ needs, allowing their electronic equipment to
function.  XP Power supplies the healthcare, industrial and technology
industries with this mission critical equipment.  Significant, long term
investment into research and development means that XP Power's products
frequently offer significantly improved functionality and efficiency.

For further information, please visit www.xppower.com



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