RICHMOND, UK -- Volex is offering a stock-swap deal to acquire MC Electronics, a North-American based manufacturer of custom medical and industrial cables, wire harnesses and electro-mechanical assemblies for medical and industrial applications.

Under terms of the deal, Volex proposed to acquire all of the issued and outstanding units of MC and all of the outstanding shareholder indebtedness owed by MC for a maximum consideration of 3.5 million new ordinary shares of 25 pence each in the company, of which 3 million will be issued on completion and the balance issued by the end of 2018, subject to MC achieving certain revenue targets for the year ending Nov. 3. The acquisition price values MC Electronics at about $875,000.

For the year ended Oct. 28, MC reported unaudited revenues of $19.1 million and an operating loss of $200,000.

MC is managed by Nova Capital Management, a UK-based investment group.

"This acquisition represents an important first step in expanding Volex's presence in the cable assembly business," said Nat Rothschild, executive chairman of Volex. "MC brings new customer relationships to Volex and also the opportunity to integrate our Mexican operations over time, to improve our profitability and competitiveness."

Volex is also exploring a number of acquisition opportunities and financing alternatives in line with its strategy of consolidating the highly fragmented cable assembly industry. It is in advanced negotiations with another significant acquisition target, the firm said.

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