WEG Enhances Market Presence with Volt Electric Motors Acquisition
In a strategic move to broaden its industrial footprint, WEG has announced the acquisition of Volt Electric Motors, a leading Turkish manufacturer of industrial and commercial electric motors. This acquisition, part of WEG’s expansion strategy, will bolster its presence in Turkey and enhance its capabilities across Europe.
Volt Electric Motors, established in 1987, is recognized for its vertically integrated operations, boasting an annual production capacity of one million motors. The company has a robust foothold in the Turkish market and exports its products to various countries across Europe, the Middle East, and Central Asia. For the fiscal year 2023, Volt reported net operating revenues of USD $70 million, with an impressive EBITDA margin of 18.5%.
Under the terms of the agreement, WEG will fully acquire Volt, including its 27,000-square-meter manufacturing facility in Izmir, Turkey. This facility specializes in designing and producing industrial and commercial electric motors with outputs up to 450 kW. The acquisition also includes Volt’s workforce of 690 employees.
Rodrigo Fumo, Managing Director of Industrial Motors at WEG, highlighted that the acquisition aligns with WEG’s strategic goals to expand its industrial and commercial motor offerings. “Volt’s established market presence in Turkey and its proximity to emerging markets in Eastern Europe, the Middle East, Central Asia, and North Africa make it an invaluable asset,” Fumo stated.
The location of Volt in Izmir is strategically advantageous, providing WEG with enhanced access to these key markets through its two major ports, which will facilitate quicker logistics and shipping times.
The acquisition is valued at USD $88 million, pending customary price adjustments and regulatory approvals. The transaction is expected to be finalized upon meeting the requisite conditions.
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