Luceco brightened by £12.4m acquisition

A Telford designer and manufacturer of LED lighting products has acquired a cable supplier in a deal worth up to £12.4m.

Luceco has purchased D-Line in an initial cash consideration of £8.6m, with another £3.8m to be paid if the firm secures a “transformational” new business win and if certain working capital balances crystallise.

D-Line, headquartered in Tyne & Wear, designs and supplies a range of cable management solutions, including decorative cable trunking and accessories, fire-rated cable supports, floor cable protectors and cable organisers.

Around 60 staff supply retail, wholesale and eCommerce customers mainly in the UK, Europe and North America. Its customers in North America are supported from a sales and distribution facility in Kentucky, USA.

Revenues of £17m and underlying operating profit of £1.4m were generated by D-Line last year, whilst gross assets at the end of the period were £8.1m.

The business will continue to operate from its existing locations and the senior management team will remain with the business post-acquisition.

John Hornby, Chief Executive Officer of Luceco commented: “D-Line’s product range is a natural fit alongside our existing categories. The business has developed a strong brand in the UK and internationally, and we are particularly excited about the opportunity to leverage D-Line’s operation in North America to support our growing business in the territory.”