TT Electronics has announced an agreement to buy US-based Torotel Products, a designer and manufacturer of power and electromagnetic assemblies and components, for USD 43.40 million.
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Subject to shareholder and US regulatory approvals, the deal is slated to complete during the fourth quarter of 2020.
Formed in 1956, Torotel designs and makes custom magnetics for customers in the aerospace, defence and energy industries, among others.
The group’s products include transformers, inductors and moulded coils, as well as electromechanical assemblies and cables.
Torotel’s offerings cover a range of applications, from the radar systems of US submarines to space exploration programmes.
Headquartered in Kansas, the company operates manufacturing facilities across Pennsylvania.
As a result of the acquisition, Torotel will extend TT’s blue-chip aerospace and defence customer base in the US and allow the buyer access to growth programmes with sole-sourced positions on major platforms.
Furthermore, the deal will expand the purchaser’s power electronics capabilities and increase its national footprint.
Michael Leahan, executive vice president of TT Electronics Power Solutions, said: “Torotel is a clear fit with TT’s strategy to build leading positions in the aerospace and defence markets where the proliferation of electronics is driving demand for our custom power management and conversion systems.”
Based in Woking, the UK-based acquiror engineers and makes electronics for customers spanning the medical, industrial and transportation industries, among others.
TT’s offerings include sensors and power management devices and the group operates manufacturing facilities worldwide, with sites in the UK, US, Mexico, Sweden and Asia.
During the six months ended 30th June 2020, the company generated revenue of USD 210.00 million, down 12.0 per cent from USD 238.20 million in the corresponding period of 2019.
There have been 1,458 deals targeting semiconductor and other electronic component manufacturers announced worldwide since the beginning of 2020, according to Zephyr, the M&A database published by Bureau van Dijk.
NVIDIA agreed to acquire UK-based Arm for USD 40.00 billion in the most valuable of these; the deal also represents the largest transaction on record for this sector.
© Zephus Ltd