Sterlite Tech has signed definitive agreements for the acquisition of Italy-based, specialised optical fibre and cable manufacturer Metallurgica Bresciana S.p.A (Metallurgica).
The acquisition will serve to significantly expand Sterlite Tech’s market presence in Europe, bringing new tier-1 customers, augmenting its product portfolio, and enhancing its flexibility and ability to serve the European market.
It is an all cash deal for approximately €47 million, which is being funded through a combination of Euro debt instruments and internal accruals. Metallurgica reported a revenue of Euro 48.7 million and net income of €4.2 million at the close of CY17. The deal is expected to close in the next fortnight.
Said Dr Anand Agarwal, CEO of Sterlite Tech: ‘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 adding highly complementary speciality cables to our products portfolio. This acquisition aligns with our global supply chain strategy of having cabling facilities in close proximity to our key customers to serve their needs for next-generation networks.’