Components manufacturer Pressac last week paid £63.1m for French company G Cartier, boosting its position as a supplier of relays and relay modules to car makers.
Pressac, which supplies electrical and electronic components to the automotive and telecoms industries, said the deal would be funded by a two-for-three rights issue at 180p, raising £60.1m net of expenses.
Cartier, Pressac’s fourth and biggest acquisition in two years, makes electronic switches, used by car manufacturers such as Peugeot and Renault, and sub-assembly suppliers such as Bosch and LucasVarity.
The company employs 1,900 people in France, Germany, Tunisia and Morocco.
Chief executive Geoff White said: ‘The electronic content of vehicles is growing at a rapid pace and the group is well placed to take advantage of this.’
Pressac estimates that the relay modules market, now worth £750m a year, will be worth about £2.5bn by 2005.