WEG announced today the signing of agreements to acquire Volt Electric Motors ("Volt"), a Turkish manufacturer of industrial and commercial electric motors, a subsidiary of the Saya Group. The acquisition value is US$ 88 million (Enterprise Value – EV), to be paid after the transaction is completed, subject to common price adjustments for this type of operation.

Founded in 1987, Volt is a vertically integrated company with a production capacity of 1 million motors per year. The company has a strong presence in the Turkish market and exports to several countries, mainly in Europe, the Middle East, and Central Asia.

With the agreement, WEG will assume full control of Volt, which has a 27,000 m² (290,000 ft²) 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. In 2023, Volt had a net operating revenue of US$ 70 million, with an EBITDA margin of 18.5%.

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 Türkiye, 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 states.

Moreover, Volt's location in Izmir, Türkiye, will facilitate WEG's access to these markets, both by land and sea. "Izmir has two large ports that will enable significantly faster transit times for any WEG operation in this region, which represents an important logistical advantage", explains Fumo.

The completion of the transaction is subject to fulfilling certain precedent conditions, including obtaining the necessary regulatory approvals related to the transaction.