Amphenol acquires cable component company Trexon for $1 billion

Electronic device manufacturer Amphenol announced on Monday that it will acquire cable component company Trexon for approximately $1 billion in cash, aiming to expand its military focused product portfolio by leveraging growing defense spending. Terex focuses on connectivity products, including wires, cables, and connectors, targeting multiple industries such as military defense, healthcare, and quantum computing. Adam Novitt, CEO of Amphenol, said, "Terex's unique portfolio of high reliability cable components will complement our existing products in the defense market." Just a few weeks ago, Amphenol, which produces cables, sensors, and antennas, reached a $10.5 billion deal to acquire CommScope's connectivity and cable solutions division to leverage the surge in demand for AI driven applications and high-speed data center infrastructure.

Anfeno is expected to use cash on hand to fund the acquisition of Terex, and the company's stock price rose slightly in pre-market trading. Since the beginning of this year, its stock price has risen by over 57%. Terex has factories in the United States and the United Kingdom, with expected sales of approximately $290 million by 2025 and an EBITDA margin of 26%. Anfeno expects that this acquisition will increase its earnings per share in the first year after the completion of the transaction. The transaction may be completed in the fourth quarter of this year.

Trexon is a design and manufacturer specializing in high reliability interconnect solutions, headquartered in Boston, MA, with operational facilities in the United States and the United Kingdom. The company mainly serves the national defense, aerospace, and other high-end professional markets, providing customized cables, connectors, and harness components. There are approximately 1100 employees worldwide, with an estimated revenue of $290 million by 2025. Our core business and technological advantages mainly focus on customized high reliability interconnected products, including:

-Special cables and cable components (such as radiation resistant and extreme temperature resistant models)

- Complex connector systems

- Integrated wiring harness solutions.

Application Fields

- Defense and Aerospace: Providing key components for missile systems, satellites, fighter jets, etc;

-High end industry: fields that require high stability, such as energy and medical equipment.

Trexon is a rapidly rising high-end internet technology supplier in recent years, and has become a key partner in the defense and aerospace fields with its customization capabilities. After being acquired by Amphenol, its technology integration and market penetration are expected to accelerate further. Trexon's product line will strengthen Amphenol's weaknesses in the defense internet market, especially in high value-added customized services; After integration, Trexon will be integrated into Amphenol's Adverse Environment Solutions division, leveraging its global channels to accelerate growth. Trexon CEO Mark Twaalfhoven called the sale a "milestone in the company's transformation" and stated that in the future, the company will continue to expand its high-tech solutions under the Anfeno umbrella. Anfeno CEO R. Adam Norwitt emphasized the high degree of synergy between the two parties' technologies and expressed optimism about the potential for joint research and development. The strategic move of Trexon to merge into Amphenol's Harsh Environment Solutions division is one of the landmark events in the electronic connector industry in recent years. This merger not only involves enterprise integration, but also reshapes the competitive landscape and technological roadmap of multiple key markets.