Acal pays over EUR 3m to buy German wind turbine power solutions maker RSG

Nov 29, 2013 - UK-based specialist electronics supplier Acal (LSE: ACL) today said it had bought German wind turbine power solutions maker RSG Electronic Components for an upfront cash consideration of EUR 3 million (USD 4.1m) before expenses and a deferred cash consideration of EUR 250,000 payable after 18 months.

More specifically, RSG is a distributor of power supply solutions for wind turbine blade pitch control systems, which a wind turbine operator uses to control the inclination angle of a turbine’s blades. According to the European Wind Energy Association, pitch control systems cost about 3% of a wind turbine’s price.

RSG is expected to enhance Acal's power capabilities in Germany, while RSG will gain access to new parent's customer base across Europe. RSG has been acquired from its managing director who will remain with the business. Acal said it had funded the deal with its existing resources. The acquired company, which employs a staff of 15, will form a separate business unit within Acal's Electronics division and will keep independent brand identity. RSG's revenues in 2012 amounted to EUR 4.8 million.

(EUR 1.0 = USD 1.361)

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