XP Power Ltd Acquisition

 
TIDMXPP 
 
31 January 2022 
 
                               XP Power Limited 
 
                           ("XP Power" the "Group") 
 
             Acquisition - accelerating our high voltage strategy 
 
XP Power, one of the world's leading developers and manufacturers of critical 
power solutions to the electronics industry, announces that it has acquired FuG 
Elektronik GmbH ("FuG") and Guth High Voltage GmbH ("Guth"), two complementary 
German businesses, from Dr Simon Consulting GmbH for a cash consideration of ? 
39.0 million (circa £32.8m) (the "Acquisition"). 
 
The Acquisition was funded using the Group's existing debt facilities and is 
subject to customary post-completion working capital adjustments. 
 
Acquisition Summary 
 
  * FuG and Guth's product portfolio is highly complementary to XP Power's 
    existing high voltage offering, bringing new technology and technical 
    capability to the Group and accelerating its strategy in this fast growing 
    market 
  * The Acquisition strengthens the Group's position in Germany, the largest 
    market for power solutions in Europe 
  * Revenue synergies expected from cross-selling FuG and Guth's products to 
    the Group's wider global customer base through our industry leading sales 
    teams and distribution network 
  * FuG and Guth have c.150 employees based in two sites near Stuttgart and 
    Munich. The Acquisition also provides an additional European design and 
    manufacturing centre, complementing the Group's existing footprint 
  * The management team of FuG and Guth will join XP Power assisting the 
    integration into the enlarged Group 
  * FuG and Guth anticipate revenue of circa ?18m and adjusted EBITDA of circa 
    ?4.5m for the year ended 31 December 2021 
  * The Acquisition is expected to be earnings enhancing in 2022, will be 
    additive to the Group's margins and will deliver a post-tax return on 
    invested capital in excess of the Group's weighted average cost of capital 
  * The Group's balance sheet will remain strong post Acquisition with net debt 
    /EBITDA expected to be well below 1.0x at FY22 year-end 
 
Gavin Griggs, CEO of XP Power, said: 
 
"FuG and Guth are businesses we know and admire and are an excellent fit with 
our existing operations, adding wholly new and highly complementary technical 
capabilities to our high voltage product portfolio. The Acquisition accelerates 
our high voltage growth strategy and expands our presence in Germany, the 
largest market for power solutions in Europe. 
 
"We look forward to welcoming our new colleagues to the Group and are confident 
FuG and Guth will have a successful future as part of XP Power." 
 
Investor Call 
 
XP Power is hosting a conference call for investors and analysts at 1000 UK 
time today. 
 
Dial in: +44 (0) 33 0551 0200 
 
Passcode: XP Power 
 
A copy of the presentation on the Acquisition which management will talk 
through on the call can be downloaded from XP Power's website at 
www.xppowerplc.com/html/financial/presentations 
 
Enquiries: 
 
XP 
Power 
 
Gavin Griggs, Chief Executive 
Officer                                                         +44 (0)118 984 
5515 
 
Oskar Zahn, Chief Financial 
Officer                                                            +44 (0)118 
984 5515 
 
Citigate Dewe 
Rogerson 
 
Kevin Smith/Jos 
Bieneman 
+44 (0)207 638 9571 
 
Note to editors 
 
XP Power designs and manufactures power convertors, the essential hardware 
component in every piece of electrical equipment that converts power from the 
electricity grid into the right form for equipment to function. 
 
XP Power has invested in research and development and its own manufacturing 
facilities in China, Vietnam and North America, to develop a range of tailored 
products based on its own intellectual property that provide its customers with 
significantly improved functionality and efficiency. 
 
Headquartered in Singapore and listed on the Main Market of the London Stock 
Exchange since 2000, XP Power is a constituent of the FTSE 250 Index. XP Power 
serves a global blue-chip customer base from 29 locations in Europe, North 
America, and Asia. 
 
For further information, please visit xppower.com 
 
 
 
END

(END) Dow Jones Newswires

January 31, 2022 02:00 ET (07:00 GMT)

XP Power (AQSE:XPP.GB)
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