XP Power Ltd Acquisition(s)
October 02 2017 - 1:00AM
UK Regulatory
TIDMXPP
2 October 2017
XP Power Limited
("XP Power" or "the Company" or "the Group")
Acquisition of Comdel
XP Power, a world-leading developer and manufacturer of critical power control
solutions for the electronics industry, announces that it has acquired the
business and assets of Comdel Inc. ("Comdel"), a designer and manufacturer of
radio frequency ("RF") power supplies (the "Acquisition").
Total consideration of US$23.0 million (GBP17.0 million) was paid in cash on
completion. The Acquisition is on a debt and cash free basis and was funded
with a new revolving credit facility of US$40.0 million with a US$20.0 million
additional accordion option. The new facility is in place to assist the
company's inorganic growth strategy.
Comdel is based in Massachusetts, USA, and supplies the industrial and
technology sectors with a range of standard, modified and custom high power RF
power conversion products. Comdel typically supplies RF power supplies to the
semiconductor, thin film, photovoltaics, and induction heating industries. In
the fiscal year ended 31 December 2016, Comdel recorded sales of US$16.5
million (GBP13.0 million), profit before tax of $1.8 million (GBP1.4 million) and
had gross assets at the year end of $10.9 million (GBP8.5 million). The
Acquisition is expected to be enhancing to the Company's earnings per share in
2018*.
Comdel and XP Power share several customers, and while there is no direct
overlap in product lines, the power supply solutions of the two companies are
considered highly complementary. Comdel's products and engineering capabilities
will enhance the Group's ability to implement its strategy of winning a greater
share of business from its largest customers by achieving wider vertical
penetration of key accounts. As well as a product offering suitable for an
array of applications used by some of XP Power's existing customer base, Comdel
will also bring a number of new customers to the Group.
Scott Johnson, Chief Executive Officer of Comdel, will remain with the business
and head up XP Power's newly formed RF Power division.
Duncan Penny, Chief Executive of XP Power, said:
"We are delighted to welcome Comdel to the XP Power Group and are excited about
the opportunity of offering its complementary product range through our global
sales channel. The Acquisition will enable us to provide our existing customers
with a comprehensive product offering in RF power, a market segment with robust
demand fundamentals but one in which we did not previously specialise. We are
confident that Comdel will have a very successful future as part of XP Power."
* This statement does not constitute a profit forecast
Ends
Enquiries:
XP Power
Duncan Penny, Chief Executive Officer +44 (0)118 976 5086
Jonathan Rhodes, Finance Director +44 (0)118 976 5074
Citigate Dewe Rogerson +44 (0)20 7638 9571
Kevin Smith/Jos Bieneman
Note to editors
XP Power is a leading international provider of essential power control
solutions. Power direct from the electricity grid is unsuitable for the
equipment which it supplies. XP Power designs and manufactures power
converters - components which convert power into the right form for our
individual customers' needs, allowing their electronic equipment to function.
XP Power supplies the healthcare, industrial and technology industries with
this mission critical equipment. Significant, long term investment into
research and development means that XP Power's products frequently offer
significantly improved functionality and efficiency.
For further information, please visit www.xppower.com
END
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