UK power cords and cable assemblies manufacturer Volex PLC announced that it has bought rival GTK Ltd for 14.3 million pounds ($17.8 million) in a cash and shares deal from venture capital and private equity firm YFM Equity Partners LLP.
Volex said that this transaction, which is immediately accretive to its earnings per share, represents an important next step in extending Volex's cable assemblies division.
The company added that GTK's business introduces important new capabilities to it, and brings highly skilled European-based sales and engineering team, new customer relationships and innovative new products. It bought GTK for $15.6 million in cash with the rest settled by the issue of 2.1 million shares in the firm.
For the year ended July, GTK reported operating profit of $2.1 million on revenue of $19.7 million whereas for the year ended April 1, Volex reported $8.8 million operating profit on revenue of $322.4 million.