Acquisition of Glassman High Voltage Inc.
10 May 2018
XP Power, one of the world's leading developers and manufacturers of critical power control components for the electronics industry, announces that it has agreed to acquire the business and assets of Glassman High Voltage Inc. (“Glassman”), a designer and manufacturer of high voltage, high power, power supplies (the “Acquisition”).
Glassman, based in New Jersey, USA, supplies the industrial and technology sectors with a range of standard, modified and custom high voltage, high power conversion products, which are generally used in applications involved in the ionization and acceleration of particles. Typical applications include semiconductor manufacturing equipment, vacuum/plasma processing, analytical instrumentation, medical diagnostics and test equipment. Glassman has the most comprehensive standard product portfolio in its sector, with the capabilities to also provide customer specific power solutions. In the fiscal year ended 31 December 2017, Glassman recorded sales in the US of US$17.3 million (£12.4 million), profit before tax of $2.9 million (£2.0 million) and had gross assets at the year end of $9.5 million (£6.8 million). The Acquisition also includes the purchase of Glassman’s small European sales business.
Total consideration of US$44.5 million (£31.8 million) will be paid in cash on completion which is expected to be effective in May 2018. The Acquisition is on a debt and cash free basis and was funded with a US$45.0 million extension of the Group’s existing revolving credit facility. The Acquisition is expected to be enhancing to XP Power’s earnings in 2018*.
Glassman and XP Power share several customers, and while there is no direct overlap in product lines, the power supply solutions of the two companies are highly complementary. Glassman’s products and engineering capabilities will enhance the Group's ability to implement its strategy of winning a greater share of business from its largest customers by achieving wider vertical penetration of key accounts. As well as a product offering suitable for an array of applications used by some of XP Power's existing customer base, Glassman will also bring a number of new customers to the Group.
Glassman is being acquired from the estate of Sanford Glassman, Glassman’s founder and major shareholder, who recently passed away. The current President, Karolee Glassman, will leave Glassman at completion. John Belden, the General Manager of Glassman, will remain with the business and continue to run Glassman within XP Power.
Duncan Penny, Chief Executive of XP Power, said:
"We are delighted to welcome Glassman to the XP Power Group and are excited about the opportunities it will bring. Glassman fits directly with our strategy of growing our high power and high voltage capabilities to complete our product offering and expand our addresseable market. This is our third such acquisition in just over two years and means we can now offer a full suite of products from miniaturized low power modules to high power rack mount high voltage solutions. We are confident that Glassman will have a very successful future as part of XP Power."
* This statement does not constitute a profit forecast
|Duncan Penny, Chief Executive Officer||+44 (0)118 976 5086|
|Gavin Griggs, Chief Financial Officer||+44 (0)118 976 5154|
|Citigate Dewe Rogerson||+44 (0)20 7638 9571|
|Kevin Smith/Jos Bieneman/Sam Stibbs|
Note to editors
XP designs and manufactures power controllers, the essential sub assembly in every piece of electrical equipment that converts the power from the electricity grid into the right form for the equipment to function. XP typically designs in power control solutions into the end products of major blue chip OEMs, with a focus on the industrial (circa 39% of sales), healthcare (circa 31% sales) and technology (circa 30% of sales) sectors. Once designed into a program, XP has a revenue annuity over the life cycle of the customer's product which is typically 5 to 7 years depending on the industry sector. XP has invested in research and development and its own manufacturing facilities in China, North America and Vietnam, to develop a range of up to date products based on its own intellectual property that provide its customers with significantly improved functionality and efficiency. Headquartered in Singapore and listed on the Main Market of the London Stock Exchange since 2000, XP serves a global blue chip customer base from 27 locations in Asia, Europe and North America.