Volex acquires Prodamex SA de CV and Terminal & Cable TC Inc.
Oct. 08, 2021
Volex has announced today that it has signed a share purchase agreement for the acquisition of the entire issued share capital of Prodamex SA de CV and Terminal & Cable TC Inc., Inc. for a total consideration of CAD$22.5 million
Founded in 1968, TC. manufacturers wire harness solutions to major defence customers, with other customers in off-highway automotive sectors. TC has a 40,000 square foot manufacturing site in Canada which is accredited to stringent international quality standards.
Founded in 2007, Prodamex manufactures wire harness solutions to support major global domestic appliance customers from its 60,000 square foot manufacturing site in Mexico.
The acquisitions further strengthen Volex’s profile across North America, adding advanced wire harness manufacturing services, and higher order volume delivery capabilities in the white goods market. They also expand our presence into the defence market and add new access into the “off-highway” market sector, supporting industrial, agricultural and construction machinery manufacturers through its ruggedised wire harness capabilities.
Commenting on the acquisition, Nat Rothschild, Executive Chairman of Volex said, “The acquisitions of Prodamex and TC further expand our geographic coverage and technical capabilities in North America. Each of these businesses represent a compelling acquisition in markets that offer us growth opportunities.
Prodamex complements the recent acquisition of DE-KA in the white goods market, expanding our capabilities into the North American market while TC builds on the recent acquisition of Irvine and our strategic intent to develop Volex’s presence in the defence market, broadening our offering into military vehicle wiring harnesses.
These acquisitions are a further indication of our ability to identify and acquire attractive businesses for compelling valuations. Our buy and build strategy, along with our pursuit of operational excellence and organic growth, are a key element of our strategy as we target $650 million in revenues and $65 million of underlying operating profit by 2024.”
The full announcement is available here.