First View: VLX - Acquisition in Attractive Medical Segment

研报英文原文证据摘录

First View: VLX - Acquisition in Attractive Medical Segment

UK | Capital Goods

Volex EquityJulyResearch14, 2026

FIRST VIEWFirst View: VLX - Acquisition in Attractive

RATING BUYMedical Segment

PRICE 503.00p^

Conclusion

It is positive to see M&A in the Medical segment (which we believe is PRICE TARGET | % TO PT 700.00p | +39%

a particularly attractive segment from a growth/margin perspective), and 52W HIGH-LOW 710p - 325p

the acquisition clearly looks low-risk, given Volex's almost decade-long FLOAT (%) | ADV MM (USD) 72.9% | 6.98

history with KST, which grew sales 10% organically in FY26 (vs VLX's MARKET CAP £930.7M | $1.2B

Medical segment at -11% due to destocking - we have in +2% for FY27F), TICKER VLX LN

^Prior trading day's closing price unless otherwise

and is margin-accretive to the group. Share price performance has been noted.

disappointing in recent weeks, reflecting broader AI pullback and likely

churn ahead of the move to main market in 10 days, but incoming investor

interest remains high, given the attractive entry point this has created. While

data centre growth has been in focus for Volex over recent years, there are

interesting organic growth & market share opportunities in all 5 segments,

and an active M&A pipeline is supportive of the achievement of Volex's

ambitious MT targets. We reiterate our Buy rating ahead of next month's

AGM trading update.

Detail

Acquisition: Volex has today announced the acquisition of the remaining

64.3% stake of Kepler SignalTek for a total consideration of US$89.4m on

a cash-free, debt-free basis, taking the group's ownership of KST to 100%.

The US$89.4m consideration comprises an initial cash consideration of US

$74.7m and a deferred cash consideration of up to US$14.7m, payable over

two years, subject to revenue targets.