CSE Global’s indirect wholly owned subsidiary, CSE Americas, agreed to acquire all of Texas-based Volta LLC from Bradley Davis and Julio Parpacen for US$25.1 million, or around S$34.8 million, the Singapore-listed company said in a filing to SGX Monday.
Volta designs, makes and services custom-engineered electrical equipment centers which distribute, control and monitor the flow of electricity and protect motors, transformers and other electrical equipment, the filing said. Volta has 120 full-time regular employees and another 62 full-time contract workers, the filing said.
“Volta provides CSE W-Industries with a compelling opportunity to enter a market which is in very close proximity to existing markets,” CSE said.
“By combining CSE’s engineering, automation and instrumentation and electrical service capabilities with Volta’s capability to design and
fabricate large scale electrical equipment centers, CSE will have a full-stream offering for the energy industry and petrochemical customers,” it added.
The acquisition is in line with CSE’s long-term business plans to expand via buying companies with specialized skills and technologies which are complimentary to the company’s existing businesses and which broaden its geographical footprint, the filing said.
CSE said the deal offered specific synergies from the sharing of customer lists.
The deal will be financing with internal resources and bank borrowings, CSE said.
On a pro forma basis assuming the deal was completed on 1 January 2018, CSE’s earnings per share would have been 4.72 Singapore cents, compared with 3.92 Singapore cents reported for the period.
Volta reported 2018 net profit before tax of US$4.9 million, the filing said.
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