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Volex plc, the global supplier of integrated manufacturing services and power products, has signed a share purchase agreement for the acquisition of the entire issued share capital of Irvine Electronics, Inc for a total consideration of $16.4 million.
The acquisition will be satisfied in cash at completion from the company's existing debt facilities and will be earnings enhancing from completion. It is expected to complete in Q3 FY2022, subject to customary closing conditions including regulatory approvals in the US.
The acquisition will strengthen Volex's existing profile in North America, adding further capabilities and capacity in California to complement the group's existing operations in Washington state and Mexico, creating a compelling value proposition for customers in the region
It will also strengthen Volex's ability to provide customers with vertically integrated solutions through enhanced printed circuit board assembly capabilities
Nat Rothschild, executive chairman of Volex said: 'The acquisition of Irvine increases our geographic coverage and technical capabilities in the key North American market. Our strategic intent is to develop Volex's presence in the defence and military aerospace markets, adding further blue-chip customers involved in long-term programmes and partnerships.
'With advanced manufacturing located in Southern California, in the centre of one of the most dynamic electronics manufacturing environments in North America, Irvine will enhance our footprint, further complementing our total integrated manufacturing solutions strategy and strengthening our global capabilities in new and existing markets.'
He added: 'This acquisition is indicative of our ongoing M&A strategy which, along with our pursuit of operational excellence and organic growth, will assist Volex as we target $650 million in revenues and $65 million of underlying operating profit by 2024.'