Volex to buy Irvine Electronics for $16.4m

AIM-listed Volex has agreed to buy US electronic solutions manufacturer Irvine Electronics for $16.4m.

Volex, which supplies integrated manufacturing services and power products, said the deal will strengthen its existing profile in North America, adding further capabilities and capacity in California to complement existing operations in Washington state and Mexico.

The acquisition is expected to be earnings-enhancing on completion, which is due in the third quarter of FY2022.

Executive chairman Nat Rothschild 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."