 "Sterlite Tech")
Sterlite Technologies on Friday said one of its subsidiaries will acquire Metallurgica Bresciana, a European specialised optical cable manufacturer, for 47 million euros in an all-cash deal.
The acquisition, which will be done through Sterlite Technologies' wholly-owned Italian subsidiary Sterlite Technologies SpA, is earnings per share (EPS) accretive and the deal is expected to be closed in the coming two weeks, Sterlite said in a BSE filing.
"The acquisition is an all-cash deal for approximately 47 million euros, which is being funded through a combination of euro debt instruments and internal accruals," it added.
Metallurgica reported a revenue of 48.7 million euros and net income of 4.2 million euros at the close of 2017.
"The acquisition will significantly expand Sterlite Tech's market presence in Europe. It will bring new tier-1 customers, augment product portfolio, and enhance flexibility and ability to better serve the European market," the statement said.
Incorporated in 1987, Metallurgica Bresciana designs and manufactures special precision optical fibre cables and specialised copper cables for various communication applications. It has operations in Italy and China.
"We are delighted to sign a definitive agreement for the acquisition of Metallurgica Bresciana, which will expand Sterlite Tech's optical fibre cabling business by augmenting our access to key European markets and add highly complementary speciality cables to our products portfolio," Sterlite Technologies CEO Anand Agarwal said.
This acquisition aligns with the company's global supply chain strategy of having cabling facilities in close proximity to key customers, to serve their needs for next generation networks, he added.
