Optical fiber manufacturer and provider Sterlite Tech (BSE: 532374, NSE: STRTECH) said it has signed a definitive agreement to acquire Metallurgica Bresciana S.p.A., an Italy-based specialized optical cable manufacturer. Through its wholly owned Italian subsidiary Sterlite Technologies S.p.A, Sterlite Tech will acquire a 100% stake in Metallurgica Bresciana.
The approximately €47 million transaction is an all-cash deal being funded through Euro debt instruments combined with internal accruals. According to Sterlite, Metallurgica reported revenue of €48.7 million and net income of €4.2 million at 2017’s close. EPS accretive from day one, Sterlite expects the deal will close in the next two weeks.
Metallurgica designs and manufactures specialized precision fiber-optic cables and copper cables for several communication applications. A privately held company, the target firm’s focus is on supplying this specialized cabling for various network applications throughout industry segments. The Metallurgica acquisition will broaden Sterlite Tech’s European market presence, the company asserts. The deal will also attract new Tier 1 customers, advance product portfolio, and improve flexibility and ability to serve the European market.
“We are delighted to sign a definitive agreement for the acquisition of Metallurgica Bresciana, which will expand Sterlite Tech’s optical fiber cabling business by augmenting our access to key European markets and adding highly complementary specialty cables to our products portfolio,” said Dr. Anand Agarwal, Sterlite Tech CEO. “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.”
Sterlite Technologies designs, builds, and manages smart digital networks, and has customers in over 100 countries and a digital web-scale offering across products, services, and software (see, for example, “Sterlite Tech intros 5G fronthaul, FTTH network cables at ANGA COM 2018”). The company has manufacturing facilities in India, China, and Brazil, as well as two software delivery centers in India.
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