XP Power Ltd Acquisition(s)

 
TIDMXPP 
 
2 October 2017 
 
XP Power Limited 
 
                 ("XP Power" or "the Company" or "the Group") 
 
Acquisition of Comdel 
 
XP Power, a world-leading developer and manufacturer of critical power control 
solutions for the electronics industry, announces that it has acquired the 
business and assets of Comdel Inc. ("Comdel"), a designer and manufacturer of 
radio frequency ("RF") power supplies (the "Acquisition"). 
 
Total consideration of US$23.0 million (GBP17.0 million) was paid in cash on 
completion.  The Acquisition is on a debt and cash free basis and was funded 
with a new revolving credit facility of US$40.0 million with a US$20.0 million 
additional accordion option. The new facility is in place to assist the 
company's inorganic growth strategy. 
 
Comdel is based in Massachusetts, USA, and supplies the industrial and 
technology sectors with a range of standard, modified and custom high power RF 
power conversion products.  Comdel typically supplies RF power supplies to the 
semiconductor, thin film, photovoltaics, and induction heating industries. In 
the fiscal year ended 31 December 2016, Comdel recorded sales of US$16.5 
million (GBP13.0 million), profit before tax of $1.8 million (GBP1.4 million) and 
had gross assets at the year end of $10.9 million (GBP8.5 million). The 
Acquisition is expected to be enhancing to the Company's earnings per share in 
2018*. 
 
Comdel and XP Power share several customers, and while there is no direct 
overlap in product lines, the power supply solutions of the two companies are 
considered highly complementary. Comdel's products and engineering capabilities 
will 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. As well as a product offering suitable for an 
array of applications used by some of XP Power's existing customer base, Comdel 
will also bring a number of new customers to the Group. 
 
Scott Johnson, Chief Executive Officer of Comdel, will remain with the business 
and head up XP Power's newly formed RF Power division. 
 
Duncan Penny, Chief Executive of XP Power, said: 
 
"We are delighted to welcome Comdel to the XP Power Group and are excited about 
the opportunity of offering its complementary product range through our global 
sales channel. The Acquisition will enable us to provide our existing customers 
with a comprehensive product offering in RF power, a market segment with robust 
demand fundamentals but one in which we did not previously specialise.  We are 
confident that Comdel will have a very successful future as part of XP Power." 
 
* This statement does not constitute a profit forecast 
 
                                     Ends 
 
Enquiries: 
 
XP Power 
 
Duncan Penny, Chief Executive Officer [phone] 
 
Jonathan Rhodes, Finance Director [phone] 
 
Citigate Dewe Rogerson [phone] 
 
Kevin Smith/Jos Bieneman 
 
Note to editors 
 
XP Power is a leading international provider of essential power control 
solutions.  Power direct from the electricity grid is unsuitable for the 
equipment which it supplies.  XP Power designs and manufactures power 
converters - components which convert power into the right form for our 
individual customers' needs, allowing their electronic equipment to function. 
XP Power supplies the healthcare, industrial and technology industries with 
this mission critical equipment.  Significant, long term investment into 
research and development means that XP Power's products frequently offer 
significantly improved functionality and efficiency. 
 
For further information, please visit www.xppower.com 
 
 
 
END 
 

(END) Dow Jones Newswires

October 02, 2017 02:00 ET (06:00 GMT)