Sterlite Tech (BSE: 532374) (NSE: STRTECH), an end-to-end global technology leader in smarter digital networks, today announced the signing of definitive agreements for acquisition of a European specialised optical cable manufacturer based in Italy.
Sterlite Tech, through its wholly owned Italian subsidiary Sterlite Technologies S.p.A, will acquire 100% stake in MetallurgicaBresciana S.p.A (Metallurgica).
Metallurgica designs and manufactures special precision optical fibre cables and specialised 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.
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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.
“We are delighted to sign a definitive agreement for the acquisition of MetallurgicaBresciana, which will expand Sterlite Tech’s optical fibre cabling business by augmenting our access to key European markets and adding highly complementary speciality cables to our products portfolio,” said Dr Anand Agarwal, CEO, Sterlite Tech. “This acquisition aligns with our global supply chain strategy of having cabling facilities in close proximity to our key customers to serve their needs for next-generation networks.”