Acal plc Acquires Trafo Holding AS

Posted: 5th June 2014 08:24

 Acal plc (LSE: ACL, "Acal", the "Group" or "the Company"), a leading European specialist electronics supplier, is pleased to announce that it has entered into a conditional agreement to acquire Trafo Holding AS, trading as Noratel, based on an enterprise value of NOK735 million (£73.5 million)(1) on a debt free basis.
Noratel is a global designer and manufacturer of electromagnetic products, specifically of low, medium and high power transformers and chokes, headquartered in Norway. The Acquisition marks a significant step forward in the Group's stated growth strategy, being highly complementary to the Group's existing electromagnetic business.
The initial cash consideration for the Acquisition of NOK291.9 million (£29.2 million) will be met in part from the proceeds of the Rights Issue (£55.0 million) and the issue of such number of Consideration Shares as is equivalent to £0.8 million as determined using the average mid-market closing price for the three trading days prior to Completion. The proceeds of the Rights Issue will also be used to repay part of Noratel's existing debt (£43.5 million).
Additionally, the Company has entered into a new Facility Agreement in respect of a £70 million revolving facility (the "Facility"), which is available in part to finance the Acquisition, and partly to refinance Acal's existing committed facilities (which stood at £24 million on 31 March 2014), to refinance part of Noratel's existing debt and for general corporate purposes.
The Acquisition is expected to be immediately significantly accretive to underlying earnings per share, taking into account the issue of the Rights Issue Shares but excluding any cost or benefits from potential operational efficiencies arising from the Acquisition. 

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