Woking-headquartered TT Electronics plc , a global provider of engineered electronics for performance critical applications, has agreed to acquire Torotel, a US-based designer and manufacturer of power and electro-magnetic assemblies and components designed for harsh environments, primarily for defence markets.
Torotel reported net sales of $26.1 million for its year ended 30 April 2020, and reported profit before tax of $0.8 million.
TT Electronics said the acquisition is a strong fit as it increases TT’s scale in the very large and attractive US defence market and represents an exciting opportunity to enhance TT’s US presence in power electronics.
It will also broaden TT’s power electronics capabilities in the US, and further increases scale following the recently acquired Covina business which has integrated well and already won new business.
The Acquisition is subject to customary closing conditions including regulatory conditions and approval by Torotel’s shareholders.
Richard Tyson, Chief Executive Officer TT Electronics said: “We are really excited about the acquisition of Torotel, a business we have been tracking for some time. It is an excellent fit and complementary to TT’s existing US power electronics business, strengthening our position in critical defence applications. We look forward to welcoming the Torotel team into the TT group.
“The acquisition accelerates our strategy of focusing on attractive growth markets and increasing TT’s margins. We are confident that Torotel will create value for our shareholders.”
Michael Leahan, EVP, TT Electronics Power Solutions, added: “Torotel is a clear fit with TT’s strategy to build leading positions in the aerospace and defense markets where the proliferation of electronics is driving demand for our custom power management and conversion systems. We are excited to welcome Torotel employees and customers to TT, and remain committed to providing our customers with the best service, products and value available.”
TT Electronics is a global provider of engineered electronics for performance-critical applications. It employs around 4,800 people across sites in the US, Europe and Asia.