LONDON, UK: Volex plc (AIM: VLX), the global supplier of integrated manufacturing services and power products, announced a 51% majority equity investment in inYantra Technologies Pvt Ltd for $8.0 million and the purchase of 13.5 acres of industrial land, which includes 3.5 acres of land and the operational buildings used by inYantra, in Pune, India for $5.0 million.
The Equity Investment and Property Purchase consideration, totaling $13.0 million, will be satisfied in cash on completion from the Company’s existing debt facilities. The Equity Investment and the Property Purchase are expected to complete in the next few weeks.
inYantra Technologies has expertise in printed circuit board assembly and box build integrated solutions, operating from a dedicated manufacturing site. It has established customer relationships and over 500 employees, led by an entrepreneurial management team.
Pune, India, is a hub for advanced manufacturing and the location of one of Volex’s largest medical customers. The Equity Investment creates substantial additional opportunities with this customer, as well as providing further growth potential from the domestic and export market.
The Equity Investment enables a strong combined cross-sell proposition to mid-volume industrial customers in the region.
The Equity Investment strengthens Volex’s ability to provide flexibility and choice to its global customer base in the provision of its vertically integrated solutions, by adding a new manufacturing region to its unique international operating footprint.
Supporting this strong growth potential, the Property Purchase will allow for an expansion in the range of capabilities the site can offer following the construction of a new 100,000 square foot Medical and Complex Industrial Technology cable assembly facility, with the scope for further development to support expansion in Volex’s other segments including consumer electrical and electric vehicles.
Nat Rothschild, Executive Chairman of Volex, commented: “This transaction offers an excellent strategic opportunity to expand our global footprint, which is consistent with our strategy, and will bring new and strengthened capabilities in the key Indian market. inYantra’s existing business, along with the imminent development of a complex cable assembly capability, will improve our customer offering, supporting low-cost manufacturing for existing and new domestic and export customers.
Volex sees a further opportunity to improve inYantra’s margins by allowing inYantra to leverage the economies of scale from being part of a larger group.”