Sterlite Tech, through its wholly ownedItalian subsidiary Sterlite Technologies S.p.A, will acquire 100% stake in Metallurgica Bresciana S.p.A (Metallurgica).
Metallurgicadesigns and manufactures special precision optical fibre cables and specialised copper cables for various communication applications. The target firm isa privately held company focused on bringing specialised cabling solutions for various network applications across industry segments.
The acquisition is an all cash deal for approximately Euro 47 million, which is being funded through a combination of Euro debt instruments and internal accruals.Metallurgica reported a revenue of Euro 48.7 million and net income of Euro 4.2 million at the close of CY17. The transaction is EPS accretive from day oneand the deal is expected to be closed in the coming two weeks.
The acquisition will significantly expand Sterlite Tech’s market presence in Europe. It will bring new tier-1 customers, augment product portfolio, and enhance flexibility and ability to better servethe European market.
“We are delighted to sign a definitive agreement for the acquisition of Metallurgica Bresciana, whichwill expand Sterlite Tech’s optical fibre cabling business by augmenting our access to key European markets andaddinghighly complementary speciality cablesto our products portfolio,” said Dr Anand Agarwal, CEO of Sterlite Tech.“This acquisition alignswithour global supply chain strategy of having cabling facilities in closeproximity to our key customers to servetheir needs for next-generation networks.”