Volex wants to acquire Slovakian cable manufacturer

In addition to this, Volex also announces a conditional placing to raise GBP 36.0 million before expenses through the issuing of 48 million new ordinary shares in order to finance the acquisition, as well as provide additional capital for the new larger group, a press release from Volex reads. Silcotec is a manufacturer and seller of cable harnesses and electronic sub-assemblies for the medical, telecommunications and computer industries. The company has 160 employees at its production facility in Slovakia – customer service and finance personnel based in Ireland. "This acquisition is an important step in expanding our Cable Assembly activities in Europe. Silcotec is a well run business, providing high quality cables, assemblies and box-builds for the medical industry. In addition, following the fund raising, Volex will have a well capitalised balance sheet to allow for further investment in our business which will benefit our customers, employees and shareholders," says Nat Rothschild, Executive Chairman of Volex, in the release. Volex strategy includes the consolidation of the highly fragmented cable assembly industry by acquiring smaller competitors, and thereby realising savings in group-wide procurement and through more efficient sales and operations. Back in April 2018, the Volex announced the acquisition of MC Electronics LLC (MC), a North-American based manufacturer of customised complex medical and industrial cables, wire harnesses and electro-mechanical assemblies for medical and industrial applications. MC, which has operations in California and Juarez, Mexico, produces customised cables, wire harnesses and electro-mechanical assemblies for over 40 customers in the North American market. This most recent acquisition is the next step in the execution of the company's strategy to grow its cable assembly business.