Business
Acquisition of DEKA
Acquisition of DEKA.
About this update from Volex Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0562F\n Volex PLC\n 12 November 2020\n \n \n \n \n \n \n \n \n \n \n 12 November 2020\n \n \n Volex plc\n \n \n (\"Volex\" or the \"Company\")\n \n \n Acquisition of DEKA for €61.8 million\n \n \n Accelerates growth strategy and provides increased presence in Europe\n \n \n Volex plc (AIM:VLX), the global supplier of integrated manufacturing services and power products, is pleased to announce it has signed a share purchase agreement for the proposed acquisition of the entire issued share capital of De-Ka Elektroteknik Sanayi ve Ticaret\n \n Anonim Şirketi (\"DEKA\"), for a total consideration of up to €61.8 million, on a debt-free basis (the \"Acquisition\"). \n \n \n \n \n \n \n The Acquisition is expected to close in January 2021, subject to approval by the Turkish Competition Authority and admission of the Consideration Shares (as defined below) to trading on AIM. \n \n \n \n \n \n About DEKA\n \n \n \n \n \n · \n DEKA is a leading power cord manufacturer for the European white goods market\n \n \n · \n Headquartered in Kocaeli, Turkey, with three production facilities and approximately 450 employees, it is strategically located in a low-cost region close to Europe\n \n \n · \n Like Volex, DEKA has shown a resilient performance through the period of the Covid-19 pandemic and reported unaudited sales of €33 million for the nine months ended 30 September 2020\n \n \n · \n DEKA has best-in-class automation, full vertical integration and a strong management team who are expected to remain with the business\n \n \n \n \n \n Strategic Rationale\n \n \n \n \n \n · \n DEKA offers exciting organic growth potential, providing Volex with increased market share in attractive end market segments\n \n \n · \n Expands Volex's presence in Europe, a key market for Volex's capabilities \n \n \n · \n Provides additional diversity to Volex's business in terms of customers and end-markets\n \n \n · \n Increased scale should allow the enlarged Volex group to continue to improve our cost structure and realise procurement savings and reductions in engineering and safety approval costs\n \n \n \n \n \n Financial Highlights\n \n \n \n \n \n · \n Track record of consistent and long-term profit growth - eight-year revenue and EBITDA CAGR of 9% and 28%, respectively\n \n...