Sterlite Tech To Acquire European Specialized Optical Cable Manufacturer
Sterlite Technologies Limited, an end-to-end global technology leader in smarter digital networks, announced the signing of definitive agreements for the acquisition of a European specialized optical cable manufacturer based in Italy.
Sterlite Tech, through its wholly-owned Italian subsidiary Sterlite Technologies S.p.A, will acquire 100% stake in Metallurgica Bresciana S.p.A (Metallurgica). Metallurgica designs and manufactures special precision optical fibre cables and specialized copper cables for various communication applications. The target firm is a 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 one and 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 serve the European market.