Acquisition(s)

25 November 2015

XP Power Limited

(“XP Power” or the “Company”)

Acquisition of EMCO High Voltage Corporation

XP Power announces that it has acquired the business and assets of EMCO High Voltage Corporation (“EMCO”), a designer and manufacturer of high voltage power modules (the “Acquisition”).

Total consideration of US$12.0 million (£7.8 million) was paid in cash on completion.  The Acquisition is on a debt and cash free basis and was funded with a new US$12.0 million term debt facility. 

EMCO, based in Northern California and with manufacturing operations in Nevada, supplies the industrial and medical sectors with a broad range of standard, modified and custom high voltage products.  In the fiscal year ended 31 December 2014, EMCO recorded sales of US$7.9 million (£5.1 million).

As well as a product offering suitable for an array of applications used by some of our existing customer base, EMCO will bring a number of new customers to XP Power.

The Acquisition is expected to be enhancing to the Company’s earnings per share in 2016*.

Duncan Penny, Chief Executive of XP Power, said:

"We are delighted to welcome EMCO to the XP Power Group and are excited about the opportunity of offering their products through our sales channel. The Acquisition will enable us to provide our existing customers with a comprehensive product offering in high voltage technologies, a market segment with robust demand fundamentals but one in which we did not previously specialise.  We are confident that EMCO will have a very successful future as part of XP Power."

* This statement does not constitute a profit forecast

Ends

Enquiries:

XP Power

Duncan Penny, Chief Executive Officer [phone]

Jonathan Rhodes, Finance Director [phone]

Citigate Dewe Rogerson [phone]

Kevin Smith/Jos Bieneman