A 42-year-old Dorset-based electronics firm has sold its entire share capital to a US defence company.
Relec Electronics, which is based at Justin Business Park in Wareham, was acquired by Gresham Worldwide - a wholly owned subsidiary of DPW Holdings - headquartered in Newport Beach, California.
The transaction was structured as a stock purchase under which Gresham Worldwide paid around $4million (£3million) with additional contingent cash payments up to $665,000 based on Relec’s future financial performance.
Relec, which was established in 1978, provides power conversion and display technology solutions in the industrial, rail transportation and emerging electronic market sectors.
Gresham Worldwide’s 海角视频 subsidiary, Salisbury-based Gresham Power Electronics, designs, manufactures, and distributes power electronics for naval and industrial markets.
Relec and Gresham Power Electronics will continue operating in the 海角视频 as stand-alone businesses, but with a joint management committee made up of representatives from both operating subsidiaries and the Gresham Worldwide executive team.
Under the acquisition agreement, Peter Lappin will continue to lead Relec as managing director and the entire Relec management team will remain with the company.
Business advisory firm Quantuma advised Relec on the sale. A team led by managing director Mark Lucas and director Adrian Howells provided advice to the company.
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Mr Lappin said: “Everyone at Relec is looking forward to becoming part of the Gresham Worldwide group. Joining forces will provide Relec with additional resources to offer more value-added services to our blue-chip customer base while increasing sales coverage and market reach for our innovative supply chain partners.
"Working with other Gresham Worldwide companies will also create opportunities for Relec to increase sales of its innovative power and display technology solutions into defence, marine, aerospace and telecommunications markets.”
Jonathan Read, Gresham Worldwide’s chief executive, added: “Peter and his team are a great addition to our already strong Gresham Power Electronics team in Salisbury.
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"This move demonstrates our commitment to growth in the 海角视频 and European markets as part of our overall strategic growth plan which contemplate similar expansions in the US, Middle East and Asian markets in the near term.”
Business advisory firm Quantuma advised Relec on the sale. A team led by managing director Mark Lucas and director Adrian Howells provided advice to the company.
Mr Lucas added: “We are delighted to have supported Peter Lappin and his fellow shareholders in successfully selling Relec to Gresham Worldwide, a US buyer, particularly during a global pandemic.
“With the shutdown of the global economy, this transaction has not been without its complexities, but the outcome achieved is a great result for all. Relec is a perfect fit with the Gresham family and will flourish with the opportunities this combination brings."