TKH France, a French provider of connectivity solutions and products, is in preliminary talks with potential acquisition targets and could complete new deals this year, Partner Thomas Ribéreau at sponsor Argos Wityu told Mergermarket.

The company plans to expand into the UK, Germany, Italy, and the Nordics through M&A and organic growth, Ribéreau said. It will target peers with expertise in a specific market segment such as military cables, he added.

Targets will have at least EUR 1m and up to EUR 10m in EBITDA, he said, declining to specify TKH France’s financials. In 2022, the business reported EUR 129.3m turnover, as reported.

The business is holding discussions with financial advisors for a potential mandate, he said. Management could also scout acquisition targets itself, and the company hired an employee dedicated to M&A this year, he added.

Any acquisition will be funded using a mix of cash and debt raised from an undisclosed banking pool, he said. He did not disclose how much TKH is considering spending on M&A.

This month, TKH France acquired ITS Partner Group, which specialises in electronic devices for the hospitality sector, and structured cabling solutions manufacturer OPENETICS, both based in Spain, as reported. Ribéreau declined to specify the size of either target.

Private equity (PE) firm Argos Wityu acquired a 55% stake in TKH France in 2023, in a deal that valued the business at EUR 118m, as reported. Its former owner, Dutch-listed technology company TKH Group [AMS:TWEKA], held the business from 2017 and retains a 40% stake, and the management team holds 5%, as per the report.

TKH France bought French peer Casanova, which specialises in communication networks for the hospitality and housing markets, in December 2023, according to an official press release.

TKH France, headquartered in the Paris region, supplies smart connectivity solutions and products to the smart-building, industrial, marine and offshore, nuclear and infrastructure, military, healthcare and entertainment markets through three companies: CAE Data, ID Câbles and Casanova, as reported.