Volex plc (AIM:VLX) signed a share purchase agreement to acquire Prodamex SA de CV and Terminal & Cable TC Inc for CAD 22.5 million from TCP Cable Inc on October 8, 2021. Prodamex and TC are autonomous operating businesses being acquired from an investment holding company based in Canada and will expand Volex's capabilities in the key North American market. Consideration represents 7.7x EBITDA for the year ended May 31, 2021. For the year ended May 31, 2021 combined revenues were CAD 31.4 million, EBITDA was CAD 2.9 million and profit before tax was CAD 2.4 million. Net assets at May 31, 2021 were CAD 6.4 million. Volex expects to retain the operational management teams at each business following the completion of the acquisition. The consideration will be paid in cash from the Company's existing debt facilities at completion, expected to be in the quarter three of FY2022 subject to customary closing conditions including regulatory approvals in Canada. The transaction will be earnings enhancing from completion.

Volex plc (AIM:VLX) completed the acquisition of Prodamex S.A De C.V. and Terminal & Cable TC Inc. from TCP Cable Inc on January 4, 2022. The transaction has received requisite regulatory approvals.