AN INDUSTRIAL manufacturer based in Basingstoke has agreed to buy a Turkish company for up to €178.1m ($195.7m) - its biggest acquisition to date.
Volex, based at Bond Close, is acquiring Murat Ticaret, a manufacturer of complex wire harnesses.
The acquisition is expected to complete in two to three months, subject to approval by the Turkish and Macedonian competition authorities.
The Basingstoke company, headed by prominent financier Nat Rothschild, is expected to complete the deal through a £60m share placing and retail offer.
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Volex is a global manufacturer of critical power and data transmission products.
Murat Ticaret is a Turkish company that supplies cable management systems to off-highway manufacturers in the agricultural, construction, and commercial vehicle sectors.
The company's customers include JCB, Bobcat, and John Deere. Murat Ticaret's systems are specially designed to keep myriad wires or cables organized within a machine, making them safer and easier to maintain.
The deal would be a major milestone in Volex's five-year plan to achieve $1.2bn in revenue by the end of its 2027 financial year.
The plan, announced by executive chairman Mr Rothschild last year, aims to expand Volex's market share in the cable management market.
The deal is still subject to regulatory approval, but if it goes through, it would be a significant boost for Volex's growth plans.
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Mr Rothschild said: "We're extremely excited to announce the acquisition of Murat Ticaret, which we believe is an exceptional fit with Volex, and is expected to be highly earnings accretive.
"Murat Ticaret is a very complementary business, as a high mix, low volume manufacturer, with a strong customer base, and many characteristics which fit well with our business model.
"Over a period of three years, we have been able to get to know the business and management team well, all of whom will transfer to Volex, and we look forward to welcoming our new colleagues to the Group later this year."
Volex has more than 8,000 employees spread across 22 countries. It is one of the largest companies by market value on London's junior AIM stock market.
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