Info-tech

Sterlite Tech to buy Italian optical cable firm for €47 million

Our Bureau Mumbai | Updated on July 06, 2018 Published on July 06, 2018

Pune-headquartered Sterlite Technologies has signed an agreement to acquire Italy-based specialised optical cable manufacturer Metallurgica Bresciana S.p.A. for €47 million in an all-cash deal.

The acquisition, which will bring in new products and customers, will be done through the company’s wholly-owned Italian subsidiary Sterlite Technologies SpA. The deal is expected to close in two weeks, Sterlite Technologies said in a regulatory filing.

“This acquisition aligns with our global supply chain strategy of having cabling facilities in close proximity to our key customers, to serve their needs for next generation networks,” Sterlite Technologies Chief Executive Officer Anand Agarwal said.

The acquisition will help Sterlite Technology’s optical fibre cabling business get access to key European markets and add specialty cables to its products portfolio, he added.

The deal will help Sterlite add 3 million fibre km (fkm) cabling capacity to its existing 15 million fkm capacity. Sterlite Technologies will fund the acquisition through a combination of euro debt instruments and internal accruals.

Further Sterlite Technologies believes this acquisition will help expedite its strategic plan of achieving $100 million net profit by fiscal 2020.

Set up in 1987, Metallurgica Bresciana designs and manufactures special precision optical fibre cables and specialised copper cables for communication applications. The Italian company, which has operations in Italy and China, had posted a net income of €4.2 million on a revenue of €48.7 million in 017.

Published on July 06, 2018
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