Leoni acquires U.S. optical fibres specialist RoMack

FRANKFURT, July 12 (BestGrowthStock) – German automotive supplier
Leoni (LEOGn.DE: ) has acquired U.S. optical fibres specialist
RoMack, in an effort to strengthen its position in niche markets
and reduce its dependency on the automotive market.

The deal will complement Leoni’s existing portfolio and will
enable the company to offer its target markets in North and
South America a range of optical technology from a single
source, the group said.

Leoni, which has not made a major acquisition since 2008,
did not disclose any financial details.

RoMack, which generates annual profits in the
mid-single-digit million range, is a specialist in fibre optic
system solutions for industry and science, focusing on the
aerospace sector, optical analysis, medical devices and
industrial lasers.

Leoni is seeking to diversify its business to offset its
dependency on the automotive industry, which was hit by its
biggest crisis a year ago.

Earlier this month. Leoni began delivering safety cables for
the construction of the 57-kilometer Gotthard Base Tunnel, which
is due to become the world’s longest tunnel on completion.

Leoni has been contracted to provide all the power supply
and safety cables for both the main tubes in a deal which the
company expects will generate sales of about 59 million euros
($74.32 million) over the next six years.

Leoni disappointed shareholders earlier this year by not
offering a dividend for 2009 after booking a loss of 138 million
euros — the worst results in its more than 90-year history.

In May the company posted a first-quarter EBIT of 23 million
euros and a net profit of 10.2 million. [ID:nLDE64A0C5]
(Reporting by Josie Cox; Editing by Louise Heavens)

Leoni acquires U.S. optical fibres specialist RoMack