Travers Smith LLP has advised its long standing client, Volex PLC, on the acquisition of the business and assets of Silcotec Europe Limited, a manufacturer and seller of cable harnesses, for an aggregate consideration of up to approximately €18.1 million and an oversubscribed £36 million equity placing.
The proposed acquisition is the next step in the execution of Volex's strategy to grow its cable assembly business following the acquisition of MC Electronics LLC in April 2018.
Completion of the acquisition is conditional upon shareholder approval, admission of the placing shares and receipt by Volex of proceeds of not less than USD 20 million from the placing.
The proceeds from the placing will be used to finance the acquisition, to provide financial resources to acquire other competitors in the cable assembly industry, and to provide working capital. The placing and the acquisition are scheduled to complete in early June 2018.
The Travers Smith team which advised Volex on the transaction was led by Head of Corporate Spencer Summerfield, Senior Associate Tom Coulter and Associate Morgan Grindlay. Additional specialist advice was provided by Partner Simon Yates and Associate Laura Jackson in tax and Senior Associate Ailie Murray in employment.
Stephenson Harwood LLP represented the nominated adviser and sole bookrunner, Liberum Capital Limited.