CORRECT: XP Power Acquires US-Based Comdel For USD23.0 Million
(Correcting the name of Comdel)
LONDON (Alliance News) - Power control components developer XP Power Ltd said on Monday it has acquired radio frequency power products manufacturer Comdel Inc for USD23.0 million in cash.
The acquisition is on a debt and cash free basis, funded by a new revolving credit facility of USD40.0 million with a USD20.0 million additional accordion option.
That acquisition of Comdel is expected to be enhancing to XP Power's earnings per share in 2018, and will bring a number of new customers to the company, and it strengthens XP Power's ability to win a greater share of business from its largest customers.
For the year ended December 31, Comdel reported a pretax profit of USD1.8 million and sales of USD16.5 million.
Scott Johnson, chief executive officer of Comdel will remain in the business and head up XP Power's newly form RF Power division.
"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," said XP Power Chief Executive Duncan Penny.
Shares in XP Power were up 3.4% at 2,869.00 pence on Monday.
By Dayo Laniyan; [email protected]
Copyright 2017 Alliance News Limited. All Rights Reserved.
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