XP Power acquires EMCO in £7.8m deal

Investment group XP Power has completed the acquisition of EMCO High Voltage Corporation, a designer and manufacturer of high voltage power modules for $12m (£7.8m) in cash.

The London-listed company said the acquisition, which is expected to be earnings enhancing from 2016, was on a debt and cash free basis and was funded with a new US$12.0m term debt facility.

Based in Northern California and with manufacturing operations in Nevada, EMCO supplies the industrial and medical sectors with a broad range of standard, modified and custom high voltage products, XP Power said.

In the year ended 31 December 2014, EMCO recorded sales of US$7.9m.

XP added that the US-based group will bring a number of new customers as well as a product offering suitable for an array of applications used by some of its existing customer base.

"The acquisition will enable us to provide our existing customers with a comprehensive product offering in high voltage technologies, a market segment with robust demand fundamentals but one in which we did not previously specialise," said group chief executive Duncan Penny.

"We are confident that EMCO will have a very successful future as part of XP Power."