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Volex to acquire Turkish power cord maker in deal worth up to €62m
StockMarketWire.com
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Manufacturing company Volex has agreed to acquire Turkish power cord maker DEKA in a deal worth up to €61.8 million.
Volex said the DEKA acquisition would expand its presence in Europe, a key market.
It added that increased scale should allow the enlarged group to continue to improve its cost structure and realise procurement savings and reductions in engineering and safety approval costs.
The deal includes an initial cash consideration of €37 million, and €9.8 million to be satisfied by the issue of 3.32 million ordinary shares in Volex to the sellers on completion of the transaction.
In addition, the parties have agreed a deferred cash consideration of €2 million payable in January 2022, as well as a deferred contingent cash consideration of up to €13 million in cash, payable within two years of completion based on certain profit targets of DEKA being met.
In its half-year results, also published today, Volex reported an increase in underlying profit before tax of 36.6% compared to the first half of the previous financial year.
Revenue rose to $202.5 million, up from $195.7 million in the same period last year.
At 9:34am: (LON:VLX) Volex PLC share price was -8.5p at 254.5p
Story provided by StockMarketWire.com
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