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XP Power acquires US power supplies business
Critical power control components manufacturer XP Power has agreed to acquire US power supplies designer Glassman in a deal worth $44.5m.
Glassman, based in New Jersey, supplies the industrial and technology sectors with a range of standard, modified and custom high voltage, high power conversion products, sharing several customers with XP.
While there is no direct overlap in product lines, XP highlighted the fact that the power supply solutions of the two companies "are highly complementary", with its products and engineering capabilities likely to 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.
XP's acquisition of Glassman, expected to be finalised later in the month, will be on a debt and cash free basis and was funded with a $45m extension of the firm's existing revolving credit facility.
Glassman, which recorded sales of $17.3m in 2017, as well as a pre-tax profit of $2.9m, was expected to be enhancing to XP Power's earnings in 2018.
Duncan Penny, chief executive of XP Power said: "Glassman fits directly with our strategy of growing our high power and high voltage capabilities to complete our product offering and expand our addressable market."
"This is our third such acquisition in just over two years and means we can now offer a full suite of products from miniaturized low power modules to high power rack mount high voltage solutions. We are confident that Glassman will have a very successful future as part of XP Power," Penny added.
At 1516 BST, XP shares were up 3.06% to 3,590p.