XP Power - German high-voltage acquisitions

XP Power has acquired two German companies specialising in high-voltage power solutions from a single vendor for cash of €39m/£32.8m, funded by existing debt facilities. The deal extends XP’s product range and strengthens its position in Europe. With higher combined operating margins than XP, the company expects the deal to be earnings enhancing this year. We have upgraded our FY22 diluted normalised EPS forecast by 1.7% and introduce FY23 forecasts for 12.3% EPS growth.