CHESHIRE cabling specialist Volex is untangling one of its three divisions after agreeing to sell its wiring harness business in a deal of up to £850k.
The Birchwood company has agreed to sell VWS for a nominal £1 to Ionix Holdings, a management buyout vehicle led by Volex’s vice president of global operations, Bill Taylor.
Volex will pay Ionix £608,000 “to assist in the future development of the wiring harness business” and up to a maximum of £250,000, dependent on Euro-Sterling exchange rate movements in the seven months following completion. The deal is expected to be completed by March 31.
Wiring Harness, which supplies commercial vehicles, aerospace, computer and industrial markets, lost £2m in the 27 weeks to October 5, 2008, on sales of £21.2m.
Volex chairman Mike McTighe said: “The sale is a positive step forward for the group.”
