Volex expands US military profile with Irvine acquisition

The AIM-traded firm said regulatory approvals had now been received, and Irvine was acquired for a total cash consideration of $16.4m, funded from its existing debt facilities.

It described Irvine as a United States-based manufacturer of electronic solutions, including printed circuit board assemblies, with more than 30 years of experience and “deep relationships” across a range of blue-chip customers, particularly in the defence, military aerospace and medical markets.

The acquisition would strengthen Volex's existing profile in North America, adding further capabilities and capacity in California to augment its existing operations in Washington state and Mexico, creating a “compelling value proposition” for customers in the region.

“The completion of the Irvine acquisition further increases our geographic coverage and technical capabilities in the key North American market,” said executive chairman Nat Rothschild.

“Irvine complements the recently announced acquisition of Terminal & Cable, a military wiring harness supplier.

“This supports our strategic intent to develop Volex's presence in the defence market, broadening our capabilities in this attractive sector.”

At 0928 GMT, shares in Volex were up 1.01% at 454.54p.