Redditch group lights up the market with acquisition

Redditch-based lighting group, F W Thorpe has strengthened its European operations with the near-£7m acquisition of a Dutch emergency lighting specialist.

The group has acquired 100% of the share capital of Famostar for an initial consideration of €7.6m (circa £6.8m), with up to an additional €0.5m (circa £0.4m) payable subject to performance conditions relating to the EBITDA for 2017 and 2018.

The acquisition is expected to be earnings enhancing in the first full financial year of ownership (to June 30, 2019), as well as complementing the company’s existing technologies, providing potential growth opportunities and synergies. It is expected to make a minor contribution to group profits in the year ending June 30, 2018.

The Famostar investment will be acquired via Lightronics Participaties, F W Thorpe’s holding company in the Netherlands and will be subject to similar share appreciation conditions established when the group acquired Lightronics in 2015.

The initial consideration has been funded from F W Thorpe’s existing cash reserves, as will any additional payout.

The senior management team will remain in the business and report directly to the board of Lightronics.

Famostar specialises in the development, manufacture and supply of emergency lighting products. Revenues are derived from the Netherlands, where it is considered one of the foremost brands in the market. The business was established in 1947 and employs 31 people.

For the financial year ended December 31, 2016, Famostar achieved revenues of €6.8m and adjusted profit before tax of €0.9m. For the year ending December 31, 2017 forecast revenues are €7.8m, with an adjusted profit before tax of €1.2m. Net assets as at December 31, 2016 were €2.9m.

F W Thorpe said the addition of Famostar would further develop the Lightronics presence in the Netherlands and expand its emergency lighting product portfolio.

Group chairman Mike Allcock said: “We are looking to build upon our successful acquisition of Lightronics by growing our presence and our product portfolio in the Netherlands.

“With the addition of the successful Famostar brand and the potential to share our recent developments in wireless emergency lighting systems, we are looking forward to the opportunity to generate further value for our shareholders.”