10 May 2018
XP Power
Limited
(“XP Power” or the
“Group”)
Acquisition of
Glassman High Voltage Inc.
XP Power, one of the world's leading developers and
manufacturers of critical power control components for the
electronics industry, announces that it has agreed to acquire the
business and assets of Glassman High Voltage Inc. (“Glassman”), a
designer and manufacturer of high voltage, high power, power
supplies (the “Acquisition”).
Glassman, based in New Jersey,
USA, supplies the industrial and technology sectors with a
range of standard, modified and custom high voltage, high power
conversion products, which are generally used in applications
involved in the ionization and acceleration of particles.
Typical applications include semiconductor manufacturing equipment,
vacuum/plasma processing, analytical instrumentation, medical
diagnostics and test equipment. Glassman has the most comprehensive
standard product portfolio in its sector, with the capabilities to
also provide customer specific power solutions. In the fiscal year
ended 31 December 2017, Glassman
recorded sales in the US of US$17.3
million (£12.4 million), profit before tax of $2.9 million (£2.0 million) and had gross assets
at the year end of $9.5 million (£6.8
million). The Acquisition also includes the purchase of
Glassman’s small European sales business.
Total consideration of US$44.5
million (£31.8 million) will be paid in cash on completion
which is expected to be effective in May
2018. The Acquisition is on a debt and cash free basis and
was funded with a US$45.0 million
extension of the Group’s existing revolving credit
facility. The Acquisition is expected to be enhancing to XP
Power’s earnings in 2018*.
Glassman 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 highly complementary. Glassman’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,
Glassman will also bring a number of new customers to the
Group.
Glassman is being acquired from the estate of Sanford Glassman, Glassman’s founder and major
shareholder, who recently passed away. The current President,
Karolee Glassman, will leave
Glassman at completion. John Belden,
the General Manager of Glassman, will remain with the business and
continue to run Glassman within XP Power.
Duncan Penny, Chief Executive of
XP Power, said:
"We are delighted to welcome Glassman to the XP Power Group and
are excited about the opportunities it will bring. Glassman fits
directly with our strategy of growing our high power and high
voltage capabilities to complete our product offering and expand
our addresseable market. This is our third such
acquisition in just over two years and means we can now offer a
full suite of products from miniaturized low power modules to high
power rack mount high voltage solutions. We are confident that
Glassman will have a very successful future as part of XP
Power."
* This statement does not constitute a profit forecast
Enquiries:
XP Power
Duncan Penny, Chief Executive
Officer +44 (0)118 976 5086
Gavin Griggs, Chief Financial
Officer +44 (0)118 976 5154
Citigate Dewe
Rogerson
+44 (0)20 7638 9571
Kevin Smith/Jos
Bieneman/Sam Stibbs
Note to editors
XP designs and manufactures power controllers, the essential sub
assembly in every piece of electrical equipment that converts the
power from the electricity grid into the right form for the
equipment to function. XP typically designs in power control
solutions into the end products of major blue chip OEMs, with a
focus on the industrial (circa 39% of sales), healthcare (circa 31%
sales) and technology (circa 30% of sales) sectors. Once designed
into a program, XP has a revenue annuity over the life cycle of the
customer's product which is typically 5 to 7 years depending on the
industry sector. XP has invested in research and development and
its own manufacturing facilities in China, North
America and Vietnam, to
develop a range of up to date products based on its own
intellectual property that provide its customers with significantly
improved functionality and efficiency. Headquartered in
Singapore and listed on the Main
Market of the London Stock Exchange since 2000, XP serves a global
blue chip customer base from 27 locations in Asia, Europe
and North America.