Basingstoke based Volex acquires Murat Ticaret

By Nicky Godding

5 September 2023

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Volex

Volex, a leading integrated manufacturing specialist for performance-critical applications and power products, has acquired Türkish wire harnessing company Murat Ticaret.

Headquartered in Türkiye, Murat Ticaret manufactures electrical wiring harnesses, automotive battery cables and is a TIER 1 original equipment manufacturer supplier. The company also provides manufacturing services including design and engineering.

The €178.1 million acquisition, first announced in June this year, is in line with Volex's strategy of organic growth, supplemented by value-enhancing M&A, and represents a significant step in achieving the Group's stated five-year plan, in particular, broadening the product offering and customer base, expanding the manufacturing footprint, and further diversifies the Group, creating a new, fifth end market

Murat Ticaret is a highly profitable business with a strong financial track record. In the year ended 31 December 2022, it delivered consolidated revenue and underlying EBITDA of approximately €158 million ) and €33 million respectively. Murat Ticaret has generated EBITDA margins of approximately 20 per cent. over its last three financial years and is highly cash generative, with cash conversion averaging approximately 80 per cent. over the same period

Volex, which is listed on the London Stock Exchange, serve a diverse range of markets and customers, with particular expertise in cable assemblies, higher-level assemblies, data centre power and connectivity, electric vehicles, and consumer electricals. It operates from 27 manufacturing locations with a global workforce of more than 11,500 people across 24 countries. All of the products and services it sells are integral to the increasingly complex digital world, providing power and connectivity from the most common household items to the most complex medical equipment.

Nat Rothschild, Executive Chairman of Volex, said:"Volex's strategic acquisition of Murat Ticaret provides immediate entry to a new growth market, with established operations supporting the attractive off-highway sector across three continents and eight manufacturing sites. Murat Ticaret's offerings seamlessly complement Volex's capabilities across geographies, fostering synergies as well as providing access to a diverse customer base including significant global brands in the agricultural, commercial, construction and industrial end markets."

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By Nicky Godding

Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe.

After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts.

She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.