WEG acquires Turkish electric motor manufacturer
WEG announced the signing of agreements to acquire Volt Electric Motors, a Turkish manufacturer of industrial and commercial electric motors that is currently a subsidiary of the Saya Group. With the acquisition, Weg will expand its presence in the region and diversify its industrial presence to serve Turkey and all of Europe.
WEG will assume full control of Volt Electric Motors, which has a 27,000-sq.-meter factory in Izmir, Turkiye. (Photo: Weg)
Founded in 1987, Volt is a vertically integrated company with a production capacity of one million motors per year. It has a strong presence in the Turkish market, the announcement noted, plus exports to several countries, mainly in Europe, the Middle East and Central Asia.
In 2023, Volt had a net operating revenue of USD £70 million, with an EBITDA margin of 18.5%. With the agreement, WEG will assume full control of Volt, including a 27,000-sq.-meter (290,000 cu. ft.) factory dedicated to the design and manufacturing of industrial and commercial electric motors with output power up to 450 kW. WEG will also incorporate a team of 690 employees.
According to Rodrigo Fumo, managing director of Industrial Motors at WEG, the acquisition aligns with WEG's growth strategy for the industrial and commercial motors business, as it will expand its presence and product offerings in highly competitive and strategic markets. "Volt has a strong presence in Turkey, where we started our own operation in 2022, in addition to proximity to regions with potential demand for our products and services, such as Eastern Europe, the Middle East, Central Asia, and North Africa," he pointed out. In addition, Volt's location in Izmir, Turkiye, will facilitate WEG's access to these markets both by land and sea.
The city has two large ports that will enable faster transit times for WEG operations in the region, representing an important logistical advantage, said Fumo.
The acquisition agreement is valued at USD £88 million, to be paid after the transaction is completed, subject to common price adjustments for this type of operation.
Completion of the transaction is subject to fulfilling certain precedent conditions, including obtaining the necessary regulatory approvals.