Volex Share Discussion Threads

[owenski] 26/8/2021 10:24

Looks like they're widening their verticals, good move and the company appears to be high quality.

[red ninja] 26/8/2021 10:23

There will be more to come :-

"This acquisition is indicative of our ongoing M&A strategy which, along with our pursuit of operational excellence and organic growth, will assist Volex as we target $650 million in revenues and $65 million of underlying operating profit by 2024."

[dr biotech] 26/8/2021 10:20

I seem to recall at the beginning of the year there were 3 acquisitions in the pipeline - so hopefully more to come. Think the timescale given was H1 so this is somewhat overdue. Looks decent enough though

[wanttowin] 26/8/2021 09:14

A muted market response from a great company that just keeps on giving..

Still I am happy with a slow burn on what is my largest holding.

[ijamlon] 26/8/2021 09:01

Stifel viewpoint:The company has made it very clear that further M&A was on the agenda and this deal appears to fit the criteria. The price paid is not unreasonable and the strategic rationale from a geographic and end-market standpoint looks sensible, opening up access to defence customers in the buoyant US West Coast electronics manufacturing market. This deal is supported by the company's revolving credit facility of $70m (plus $30m accordion) and we would not rule out further deals in due course. With a strong start to FY22 trading, we have been encouraged to see demand levels strong over a number of key end markets. While in general the investment plans may keep a lid on margin development in the shorter term, we view this focus on people and automation as necessary to underpin the company's product portfolio and cost competitiveness. Managing growth and keeping costs down in an inflationary market is not straightforward, and the COVID-19 pandemic has brought its own demand dynamics. However, we remain attracted to Volex's end- market drivers, with the benefit of both improving core medical and industrial demand plus the structural change in the electrical vehicle (EV) market.

[igoe104] 26/8/2021 08:40

Should get loads of write-ups over the next week, and tip updates etc. So this should continue to steadily rise over the coming week or so...

[ayl30] 26/8/2021 08:10

Thought the news today would have been worth more than 2% at the open

[its the oxman] 26/8/2021 08:09

Acquisition of Irvine relatively small in context of the group but looks a good price and earnings enhancing.

[grabster] 26/8/2021 08:00

"the Company will still have financial flexibility to continue to progress opportunities in its exciting acquisition pipeline"

Aiming to double in size within 2 years.
Aggressive stuff.

[lupins2] 26/8/2021 07:58

It will be interesting to see how the market reacts to this aquisition- Lets hope its positive. good luck all holders.

[ijamlon] 26/8/2021 07:55

Volex has announced today that it has signed a share purchase agreement for the acquisition of the entire issued share capital of Irvine Electronics, Inc. for a total consideration of $16.4 millionFounded in 1990, Irvine is a US based manufacturer of electronic solutions supporting long-term projects in the defence sector with other significant customers in aerospace, medical and complex industrial technology sectors. It has a 50,000 square foot manufacturing site in Irvine, CA which provides ample capacity to grow and is accredited to stringent international quality standards.The acquisition strengthens Volex's existing profile in North America, adding further capabilities and capacity in California to complement the Group's existing operations in Washington state and Mexico, creating a compelling value proposition for customers in the region with vertically integrated manufacturing solutions through enhanced printed circuit board assembly capabilities.Commenting on the acquisition, Nat Rothschild, Executive Chairman of Volex said, ""The acquisition of Irvine increases our geographic coverage and technical capabilities in the key North American market. Our strategic intent is to develop Volex's presence in the defence and military aerospace markets, adding further blue-chip customers involved in long-term programmes and partnerships.With advanced manufacturing located in Southern California, in the center of one of the most dynamic electronics manufacturing environments in North America, Irvine will enhance our footprint, further complementing our total integrated manufacturing solutions strategy and strengthening our global capabilities in new and existing markets."

[zingerburger] 26/8/2021 07:44

Transaction Highlights

-- Earnings-enhancing from completion
-- Consideration represents 3.5x adjusted(1) EBITDA for the year ended 31 December 2020
-- Irvine delivering current annual run rate adjusted(1) EBITDA c.$3-4m

[zingerburger] 26/8/2021 07:41

420p today

👏

[nw99] 26/8/2021 07:38

This acquisition is indicative of our ongoing M&A strategy which, along with our pursuit of operational excellence and organic growth, will assist Volex as we target $650 million in revenues and $65 million of underlying operating profit by 2024."

[igoe104] 26/8/2021 07:38

Its time to break that £4 barrier now....

[igoe104] 26/8/2021 07:13

Defence and medical sectors in USA, great value acquisition. 👏 👏

[ayl30] 26/8/2021 07:08

Good news, another brick in the wall, like the immediate value enhancing bit

[onjohn] 24/8/2021 12:12

igoe10423 Aug '21 - 14:35 - 4251 of 4254
0 0 0
The ATH for VLX is £20, its still 9% below its IPO price... maybe several years down the road that £20 ATH will be beaten...



yes please

[grabster] 24/8/2021 07:54

I too have found nothing to support alleged rumours regarding any current Amphenol interest.
There is a past connection:

(same story on Volex own website)

[rampmeister] 23/8/2021 23:41

Thanks for correction Igoe104 Just checked out long term chart and note it’s a 10 year high we are approaching. Chart shows a large bottom shaped bowl forming. I think the Chartists will be all over this once we punch through the £4 barrier.

RM

[valhamos] 23/8/2021 14:51

Number of shares is 5 times higher since it was at £20 though.

[igoe104] 23/8/2021 14:35

The ATH for VLX is £20, its still 9% below its IPO price... maybe several years down the road that £20 ATH will be beaten...

[rampmeister] 23/8/2021 12:53

Closing in on ath and then through 4 quid barrier hopefully. Patience being rewarded here.

RM

[its the oxman] 23/8/2021 11:44

Getting evermore hopeful with this continued strength that we will push on, after a long sideways chart move the long awaited break of 400p could see a run toward 500p fairly quickly. Takeover talk , acquisitions and broker tips keep on coming so everything looks really good. Famous last words.

[red ninja] 23/8/2021 11:40

Probably just a response to some of the Asian markets rising a bit overnight.