Wire harness maker BizLink Holding Inc (貿聯控股) on Friday announced that it had reached a binding agreement with Leoni AG to acquire the German company’s Leoni Industrial Solutions for 451 million euros (US$522.9 million) in an all-cash transaction.
BizLink’s board of directors approved the acquisition and the company is planning to fund the deal with cash and bank financing, the company said in a regulatory filing.
BizLink has NT$9.062 billion (US$325 million) in working capital, it said.
Photo: Chen Rou-chen, Taipei Times
Leoni Industrial Solutions last year reported revenue of 430 million euros.
It is a leading supplier of cables and cable systems for a wide range of sector, including telecom, healthcare, robotics, factory automation, e-mobility and rolling stock.
BizLink said the acquisition would help expand its market presence in Europe, North America and Asia, boost its position in global interconnect solutions, and drive greater earnings accretion and meaningful synergies in the long term.
“BizLink’s acquisition of Leoni Industrial Solutions will boost our technical and service capabilities, solidify our global scale, bring us closer to customers and gain access to new industrial customers,” BizLink chairman Roger Liang (梁華哲) said in a statement. “The acquisition brings forward our long-term diversification plan and will provide BizLink with immediate gains within multiple secular growth industries.”
The Leoni Industrial Solutions deal comes after BizLink completed the acquisition of Leoni’s electrical appliance business in 2017 and Speedy Industrial Supplies Pte Ltd last year.
The deal is expected to be completed early next year after customary closing conditions are met and gaining approval from regulatory bodies, the company said.
BizLink — whose products range from cable assemblies to wiring harnesses for use in the information technology, data communications, medical, consumer electronic, motor vehicle and industrial equipment industries — reported an increase of cumulative revenue in the first eight months of 26.07 percent year-on-year to NT$17.95 billion.
Despite tight component supply in the near term, the company has since last year posted rising contributions from its electric vehicle, energy storage, datacenter and semiconductor equipment businesses, analysts have said.
BizLink’s improved product mix is expected to add momentum to its earnings recovery, the analysts said.
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