XP Power acquisitions bolster company's European presence

Published by

Stephen Emerson

Picture: XP Power

Power supplier XP Power has acquired two German firms to help cement its European footprint.

The Reading-based form announced today that has bought FuG Elektronik GmbH (FuG) and Guth High Voltage GmbH (Guth) from Dr Simon Consulting GmbH in cash for a fee of £32.8m.

The two companies have around 150 employees at sites near Stuttgart and Munich.

The purchase was funded using XP Power's existing debt facilities with FuG and Guth both generating close to £15m in revenue in 2021 and adjusted EBITDA of around £3.7m.

XP Power say the acquisition is expected to be "earnings enhancing" in 2022 and will deliver a post return on invested capital in excess of the Group’s weighted average cost of capital.

The management teams of both firms joining XP Power to assist with the integration post sale which XP Power say will provide additional European design and manufacturing expertise.

Gavin Griggs, CEO of XP Power, said the acquisition strengthened its position in Germany which is the company's largest market for power solutions in Europe.

He said: “FuG and Guth are businesses we know and admire and are an excellent fit with our existing operations, adding wholly new and highly complementary technical capabilities to our high voltage product portfolio. The Acquisition accelerates our high voltage growth strategy and expands our presence in Germany, the largest market for power solutions in Europe.

“We look forward to welcoming our new colleagues to the Group and are confident FuG and Guth will have a successful future as part of XP Power.”

A statement released by XP Power this morning said that FuG and Guth’s product portfolio is highly complementary to XP Power’s existing high voltage offering.

It added that the purchase would bring new technology and technical capability to the group and that FuG and Guth’s products will also be sold to XP Power's global customer base.

Stephen Emerson

Stephen Emerson is the Managing Editor of The Business Magazine and is responsible for the publication's print publications and online properties including the newly launched Biz News websites in Hampshire and Dorset. Stephen has been a journalist for 20 years and has worked at local, regional and national publications and led a team which made The Scotsman website one of the fastest growing news sites in the UK with over eight million monthly users. He has a keen interest in technology, property and corporate finance and telling the stories of the people behind the successful firms in these sectors.