REG-XP Power Ltd: Acquisition

XP PowerAnnouncement

31/01/2022 07:05

31 January 2022

XP Power Limited

(“XP Power” the “Group”)

Acquisition – accelerating our high voltage strategy

XP Power, one of the world’s leading developers and manufacturers of
critical power solutions to the electronics industry, announces that it has
acquired FuG Elektronik GmbH (“FuG”) and Guth High Voltage GmbH
(“Guth”), two complementary German businesses, from Dr Simon Consulting
GmbH for a cash consideration of €39.0 million (circa £32.8m) (the
“Acquisition”).

The Acquisition was funded using the Group's existing debt facilities and is
subject to customary post-completion working capital adjustments.

Acquisition Summary
* FuG and Guth’s product portfolio is highly complementary to XP Power’s
existing high voltage offering, bringing new technology and technical
capability to the Group and accelerating its strategy in this fast growing
market
* The Acquisition strengthens the Group’s position in Germany, the largest
market for power solutions in Europe
* Revenue synergies expected from cross-selling FuG and Guth’s products to
the Group’s wider global customer base through our industry leading sales
teams and distribution network
* FuG and Guth have c.150 employees based in two sites near Stuttgart and
Munich. The Acquisition also provides an additional European design and
manufacturing centre, complementing the Group’s existing footprint
* The management team of FuG and Guth will join XP Power assisting the
integration into the enlarged Group 
* FuG and Guth anticipate revenue of circa €18m and adjusted EBITDA of circa
€4.5m for the year ended 31 December 2021
* The Acquisition is expected to be earnings enhancing in 2022, will be
additive to the Group’s margins and will deliver a post-tax return on
invested capital in excess of the Group’s weighted average cost of capital
* The Group’s balance sheet will remain strong post Acquisition with net
debt/EBITDA expected to be well below 1.0x at FY22 year-end
Gavin Griggs, CEO of XP Power, said:

“FuG and Guth are businesses we know and admire and are an excellent fit
with our existing operations, adding wholly new and highly complementary
technical capabilities to our high voltage product portfolio. The Acquisition
accelerates our high voltage growth strategy and expands our presence in
Germany, the largest market for power solutions in Europe.

“We look forward to welcoming our new colleagues to the Group and are
confident FuG and Guth will have a successful future as part of XP Power.”

Investor Call

XP Power is hosting a conference call for investors and analysts at 1000 UK
time today.

Dial in: +44 (0) 33 0551 0200

Passcode: XP Power

A copy of the presentation on the Acquisition which management will talk
through on the call can be downloaded from XP Power’s website at
www.xppowerplc.com/html/financial/presentations

Enquiries:

XP
Power                                                                                                                                     

Gavin Griggs, Chief Executive
Officer                                                        
+44 (0)118 984 5515

Oskar Zahn, Chief Financial
Officer                                                           
+44 (0)118 984 5515

Citigate Dewe
Rogerson                                                                                                            

Kevin Smith/Jos
Bieneman                                                                         
+44 (0)207 638 9571

Note to editors

XP Power designs and manufactures power convertors, the essential hardware
component in every piece of electrical equipment that converts power from the
electricity grid into the right form for equipment to function.

XP Power has invested in research and development and its own manufacturing
facilities in China, Vietnam and North America, to develop a range of tailored
products based on its own intellectual property that provide its customers
with significantly improved functionality and efficiency.

Headquartered in Singapore and listed on the Main Market of the London Stock
Exchange since 2000, XP Power is a constituent of the FTSE 250 Index. XP Power
serves a global blue-chip customer base from 29 locations in Europe, North
America, and Asia. 

For further information, please visit xppower.com



Copyright (c) 2022 PR Newswire Association,LLC. All Rights Reserved