Business
Acquisition of Prodamex SA and Terminal & Cable
Acquisition of Prodamex SA and Terminal & Cable.
About this update from Volex Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4298O\n Volex PLC\n 08 October 2021\n \n \n \n \n \n \n \n 8 October 2021 \n \n \n \n \n \n Volex plc\n \n \n (\"Volex\" or the \"Company\")\n \n \n \n \n \n Acquisition of Prodamex SA de CV and Terminal & Cable TC Inc. for CAD$22.5 million\n \n \n \n \n \n Expands presence and capabilities in key North American market\n \n \n \n \n \n Volex plc (AIM:VLX), the global supplier of integrated manufacturing services and power products, is pleased to announce that it has signed a share purchase agreement for the acquisition of the entire issued share capital of Prodamex SA de CV (\"Prodamex\") and Terminal & Cable TC Inc. (\"TC\"), for a total consideration of CAD$22.5 million (the \"Acquisition\"). The consideration will be paid in cash from the Company's existing debt facilities at completion, expected to be in Q3 FY2022 subject to customary closing conditions including regulatory approvals in Canada. \n \n \n \n \n \n Prodamex and TC are autonomous operating businesses being acquired from an investment holding company based in Canada and will expand Volex's capabilities in the key North American market in the domestic appliance, defence and off-highway industries. \n \n \n \n \n \n The transaction will be earnings enhancing from completion.\n \n \n \n \n \n Strategic Rationale - Prodamex\n \n \n \n \n \n · \n Prodamex provides an advanced manufacturing facility serving customers in Mexico, the USA and Canada. This facility delivers additional manufacturing capability in Central Mexico, tailored to the delivery of higher volume requirements. This will complement Volex's manufacturing plants in Tijuana and Juarez and will create additional flexibility for customers \n \n \n · \n The business has longstanding expertise in wire harnesses for domestic appliances and provides cross-selling opportunities with Volex's existing investments in DE-KA and the recently expanded facility in Batam, Indonesia, establishing a global low-cost presence to service the white goods and commercial markets\n \n \n · \n Creates opportunities for further cost synergies through leveraging our global supply chain \n \n \n Strategic Rationale - TC\n \n \n \n \n \n · \n One of the largest wire harness manufacturers in Canada with over 50 years' experience, ...