Acal Plc (LON:ACL) has successfully raised £14.1mln through a share placing to help pay for its recent acquisition of UK-based components manufacturer Variohm Holdings.
The customised electronics firm has sold 6.4mln new shares at 220p each, with the new equity equating to around 10% of the group’s existing share capital.
Acal announced the purchase of Variohm on Friday for £12mln in cash up front, with a further £1.85mln due if the company achieves certain growth targets and conditions.
Notwithstanding the dilution from the share placing the acquisition is expected to bring immediate benefits, and Acal says it will be earnings enhancing in the first full year following the deal’s completion (the 12 months ending March 2018).
"The acquisition of Variohm continues our strategy of building a differentiated group with higher operating margins through the acquisition of high quality, growing design and manufacturing businesses,” said Acal chief executive Nick Jefferies last week.