17 February 2021
Volex plc
("Volex" or the "Company")
Completion of DE-KA Acquisition
Volex plc (AIM:VLX), the global supplier of integrated manufacturing services and power products, confirms that, further to the announcement of the proposed acquisition of De-Ka Elektroteknik Sanayi ve Ticaret Anonim Şirketi ("DE-KA") made on 12 November 2020 (the "Acquisition"), the Acquisition has been fully approved by the Turkish Competition Authority and 3,320,000 Ordinary Shares of 25 pence each in Volex (the "Consideration Shares") have been conditionally allotted to the sellers to satisfy the share element of the consideration payable pursuant to the Acquisition. Completion of the Acquisition ("Completion") shall take place automatically immediately following admission of the Consideration Shares to trading on AIM, which is expected to take place on or around 8.00am on 18 February 2021.
The cash consideration payable in respect of the Acquisition comprises an initial cash consideration of €37.0 million, a deferred cash consideration of €2.0 million payable in January 2022 and a deferred contingent cash consideration of up to €13.0 million, which may be payable within two years of Completion based on certain profit targets of DE-KA being met.
An additional €9.8 million is to be satisfied by the issue of the Consideration Shares to the sellers on Completion. The value of the Consideration Shares is based on Volex's share price of £2.63 on the date that the sale and purchase agreement was signed. The Consideration Shares are subject to a six-month lock-up.
In addition, Volex is pleased to confirm that Servatron, Inc ("Servatron") has achieved certain operating profit targets for the year ended 31 December 2020 set under the acquisition agreement entered into on 30 July 2019. The second tranche of deferred consideration shares are now due to the former owners, and current employees, of Servatron, comprising 1,481,239 Ordinary Shares of 25 pence each in Volex (the "Servatron Deferred Consideration Shares"). The Volex Board has therefore approved the issue of the Servatron Deferred Consideration Shares.
Application has been made to the London Stock Exchange for the admission of the 3,320,000 Consideration Shares in respect of DE-KA and 1,481,239 Servatron Deferred Consideration Shares in respect of Servatron to trading on AIM ("Admission"). Admission of the Consideration Shares and Servatron Deferred Consideration Shares is expected to take place on or around 8.00am on 18 February 2021.
The Company's total issued share capital following Admission will consist of 157,052,041 ordinary shares of 25 pence each with one voting right per share. The Company holds no ordinary shares in treasury. Therefore, following Admission, this figure of 157,052,041 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company.
Nat Rothschild, Executive Chairman of Volex, commented:
"DE-KA is a world-class business, and one of the two leading power cord producers in Europe. This, combined with its strong management team and impressive customer list, means it is a perfect fit with our existing business and accelerates our strategy of creating the most efficient and lowest cost global producer in the industry, providing an immediate and scalable European platform. I am delighted for our shareholders that we are completing the acquisition and look forward to working alongside the DE-KA team on the next exciting stage of Volex's development."
-ENDS-
For further information please contact:
Volex plc +44 (0) 7747 488 785
Nat Rothschild, Executive Chairman
Jon Boaden, Chief Financial Officer
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Simon Alexander
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