LONDON, UK: Volex plc (AIM: VLX), the worldwide provider of built-in manufacturing services and energy products, introduced a 51% majority fairness funding in inYantra Technologies Pvt Ltd for $8.0 million and the acquisition of 13.5 acres of industrial land, which incorporates 3.5 acres of land and the operational buildings utilized by inYantra, in Pune, India for $5.0 million.
The Equity Investment and Property Purchase consideration, totaling $13.0 million, will be satisfied in money on completion from the Company’s existing debt facilities. The Equity Investment and the Property Purchase are anticipated to full within the subsequent few weeks.
inYantra Technologies has experience in printed circuit board meeting and field construct built-in solutions, working from a devoted manufacturing site. It has established buyer relationships and over 500 employees, led by an entrepreneurial administration team.
Pune, India, is a hub for superior manufacturing and the location of 1 of Volex’s largest medical customers. The Equity Investment creates substantial additional alternatives with this customer, in addition to offering additional growth potential from the home and export market.
The Equity Investment enables a strong mixed cross-sell proposition to mid-volume industrial customers within the region.
The Equity Investment strengthens Volex’s ability to present flexibility and option to its global buyer base within the provision of its vertically built-in solutions, by including a brand new manufacturing area to its distinctive worldwide working footprint.
Supporting this strong growth potential, the Property Purchase will allow for an expansion within the vary of capabilities the site can offer following the development of a brand new 100,000 sq. foot Medical and Complex Industrial Technology cable meeting facility, with the scope for additional development to support expansion in Volex’s different segments together with consumer electrical and electrical vehicles.
Nat Rothschild, Executive Chairman of Volex, commented: “This transaction offers an excellent strategic alternative to expand our global footprint, which is constant with our strategy, and can bring new and strengthened capabilities within the important thing Indian market. inYantra’s existing business, together with the imminent development of a complex cable meeting capability, will enhance our buyer offering, supporting low-cost manufacturing for existing and new home and export customers.
Volex sees a additional alternative to enhance inYantra’s margins by permitting inYantra to leverage the economies of scale from being a half of a bigger group.”
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