Our approach involves the identification of high-performing enterprises within sectors in which we possess a deep understanding and significant experience
We are particularly attracted to businesses with strong and long-lasting customer relationships and proven competencies.
Our acquisition pipeline is carefully managed to prioritise opportunities that enhance our Group’s value proposition and extends our presence into existing or adjacent markets. Given the dynamic nature of the global supply chain landscape, the strategic geographic location of potential targets is also a critical consideration. We only consider targets demanding substantial integration or restructuring when we are comfortable that we have sufficient availability of the necessary managerial resources to manage these transformations effectively.
In general, acquisitions should enhance the Group’s margin profile. The identification phase includes businesses not actively on the market as well as those already in a sales process. Potential acquisitions undergo a rigorous qualification procedure and must receive approval from our investment committee before we enter the negotiation stage. Due diligence begins only once there is a clear agreement on the commercial terms. Volex has a proven track record of successfully acquiring and integrating businesses, with an aggregate investment totalling, approximately, $400 million since the beginning of FY2019. Over this period, the Group has developed and refined a well-structured approach for assessing potential targets. The integration of our most recent and largest acquisition, Murat Ticaret, is progressing well. This acquired business boasts a strong and resilient operating culture dedicated to delivering high quality production promptly to a diverse customer base with complex requirements.