Volex PLC Acquisition of MC Electronics LLC (1574M)
26 April 2018 - 4:01PM
UK Regulatory
TIDMVLX
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
END
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