Volex PLC Acquisition of majority stake in inYantra (7744D)
07 Marzo 2022 - 08:00AM
UK Regulatory
TIDMVLX
RNS Number : 7744D
Volex PLC
07 March 2022
7 March 2022
Volex plc
("Volex" or the "Company")
Acquisition of a majority stake in inYantra Technologies Pvt Ltd
and property purchase for combined consideration of $13.0
million
Volex plc (AIM:VLX), the global supplier of integrated
manufacturing services and power products, is pleased to announce a
51% majority equity investment in inYantra Technologies Pvt Ltd
("inYantra") for $8.0 million (the "Equity Investment") and the
purchase of 13.5 acres of industrial land, which includes 3.5 acres
of land and the operational buildings used by inYantra, in Pune,
India (the "Property Purchase") for $5.0 million. The Equity
Investment and Property Purchase consideration, totaling $13.0
million, will be satisfied in cash on completion from the Company's
existing debt facilities. The Equity Investment and the Property
Purchase are expected to complete in the next few weeks.
Strategic Rationale
- inYantra has expertise in printed circuit board assembly and
box build integrated solutions, operating from a dedicated
manufacturing site. It has established customer relationships and
over 500 employees, led by an entrepreneurial management team
- Pune, India, is a hub for advanced manufacturing and the
location of one of Volex's largest medical customers. The Equity
Investment creates substantial additional opportunities with this
customer, as well as providing further growth potential from the
domestic and export market
- The Equity Investment enables a strong combined cross-sell
proposition to mid-volume industrial customers in the region
- The Equity Investment strengthens Volex's ability to provide
flexibility and choice to its global customer base in the provision
of its vertically integrated solutions, by adding a new
manufacturing region to its unique international operating
footprint
- Supporting this strong growth potential, the Property Purchase
will allow for an expansion in the range of capabilities the site
can offer following the construction of a new 100,000 square foot
Medical and Complex Industrial Technology cable assembly facility,
with the scope for further development to support expansion in
Volex's other segments including consumer electrical and electric
vehicles
Transaction Highlights
- For the year ending 31 March 2022, inYantra is expected to
generate revenues of approximately $22.0 million and EBITDA of
approximately $1.6 million across consumer electrical and
industrial markets
- The existing management team has delivered compound annual
revenue growth of 38% in the last five years and will remain in
place to deliver a joint business plan focused on further
growth
Nat Rothschild, Executive Chairman of Volex, commented:
"This transaction offers an excellent strategic opportunity to
expand our global footprint, which is consistent with our strategy,
and will bring new and strengthened capabilities in the key Indian
market. inYantra's existing business, along with the imminent
development of a complex cable assembly capability, will improve
our customer offering, supporting low-cost manufacturing for
existing and new domestic and export customers. Volex sees a
further opportunity to improve inYantra's margins by allowing
inYantra to leverage the economies of scale from being part of a
larger group."
About inYantra
inYantra specialises in the assembly of printed circuit boards
and box builds. It operates from a single site in Pune,
Maharashtra, India, with around 500 employees and occupies
approximately 3.5 acres of the 13.5 acres site being acquired via
the Property Purchase. The business was founded in 2002 and
acquired by Pravin Jain of Sonoma Management Partners (SMP) in
2011. Since the involvement of SMP, the business has broadened its
customer base, installed three state of the art high speed surface
mount technology lines and added numerous industry and quality
accreditations. Under the stewardship of an experienced management
team, the business has grown significantly in this period.
Key customer sectors are automotive, consumer and industrial
automation where inYantra has built strong customer relations with
a number of Indian and international blue-chip original equipment
manufacturers and Tier 1 suppliers. inYantra has delivered exciting
growth despite the global challenges of Covid-19 with revenues
increasing from US$10.7 million in the year to 31 March 2020 to an
expected c.$22.0 million in the year to 31 March 2022.
For further information please contact:
Volex plc +44 (0)7971 156 431
Nat Rothschild, Executive Chairman
Jon Boaden, Chief Financial Officer
Julian Wais, Head of Investor Relations
investor.relations@volex.com
Singer Capital Markets - Nominated Adviser
& Joint Broker +44 (0)20 7496 3000
Shaun Dobson / George Tzimas
HSBC Bank plc - Joint Broker +44 (0)20 7991 8888
Simon Alexander / Joe Weaving
Powerscourt - Media Enquiries +44 (0)20 7250 1446
James White / Maxim Hibbs
About Volex
Volex plc (AIM:VLX) is a global leader in integrated
manufacturing for performance-critical applications and a supplier
of power products. We serve a diverse range of markets and
customers, with particular expertise in cable assemblies,
higher-level assemblies, data centre power and connectivity,
electric vehicles, and consumer electricals. We are headquartered
in the UK and operate from 20 manufacturing locations with a global
workforce of over 6,900 employees across 22 countries. Our products
are sold through our own locally based sales teams and through
authorised distributor partners to Original Equipment Manufacturers
('OEMs') and Electronic Manufacturing Services ('EMS') companies
worldwide. All of the products and services that we offer are
integral to the increasingly complex digital world in which we
live, providing power and connectivity from the most common
household items to the most complex medical equipment. For more
information, please visit www.volex.com
-ENDS-
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