TT electronics buys manufacturer ACW
TT electronics has acquired the majority of business and assets of ACW Technology, the troubled UK contract manufacturer which was in administration.
As part of the deal production from ACW Technology’s China facility in Zhuhai will be transferred to TT electronics’ facility in Suzhou, China.
It has paid £3.1m, including the repayment of existing debt facilities, and will acquire net assets of £3.8m.
“This acquisition provides an opportunity to further strengthen our IMS division and brings with it world class customers in our target markets, many of whom we already work with,” said Group Chief Executive, Geraint Anderson.
With UK assembly operations based in Southampton and Tonypandy, South Wales, ACW Technology specialises in aerospace and defence technologies.
TT electronics-IMS confirmed it will maintain its existing 89,000 square foot facility in Rogerstone, South Wales that specialises in PCBA and complete box build integration.
It also serves as home to Abtest, TT electronics’ UKAS accredited No. 0042 environmental and reliability testing laboratory.
“The addition of this operation and its seasoned team enhances TT electronics’ overall services offerings in the UK, placing us in a stronger position as one of the leading EMS companies in the aerospace and defence industries,” said Gary Allen, managing director, TT electronics.
“The acquisition of ACW extends our customised services to all customers, and further demonstrates our commitment to the aerospace and defence sector,” said Allen.
Owen Reeves, CEO for ACW Technology will be joining the TT-IMS team to continue developing strong customer relationships and future global opportunities.
“We expect this acquisition to result in greater opportunities for both ACW and TT customers, as well as broaden our strength in the aerospace, defence and medical market segments,” said Reeves.
“We continue to identify and evaluate potential acquisitions to enhance the development of our Sensors and Components divisions which supply leading manufacturers in the defence, aerospace, medical, transportation and industrial markets,” said Anderson
The acquired business is expected to deliver incremental revenue in 2013 in excess of £25m and will be immediately earnings enhancing on an underlying basis.
The TT Group expects to incur exceptional one-off restructuring costs of approximately £0.9m in 2012 and £1.1m in 2013 in connection with the acquisition.