F W Thorpe goes Dutch to make acquisition

REDDITCH lighting manufacturer F W Thorpe has acquired 65% of the issued share capital of Dutch company Lightronics Participaties for an initial £5.7m.

The Dutch firm is a specialist in lighting systems and controls for a range of different sectors.

F W Thorpe says the acquisition is expected to enhance earnings per share in the first full year of ownership and will complement the company’s existing technologies, presenting potential growth opportunities and synergies.
 
F W Thorpe will pay an initial consideration of around £5.7m, with a fixed commitment that the remaining 35% of the issued share capital will be purchased from existing management between the third and sixth year anniversaries of the acquisition. 

As part of the transaction, the 35% held by management has been partially funded by F W Thorpe by the issue of a loan. 

The current senior management team have agreed to remain with Lightronics and have signed new contracts to this effect.
 
During its last financial year ended 31st December 2014, Lightronics achieved revenues of €13.9m and adjusted profit before tax of €1.4m. 
 
F W Thorpe says the addition of Lightronics will further develop its sales presence in Europe. 
 
Chairman Andrew Thorpe said: “This acquisition enables F W Thorpe to widen its distribution of products and technology in Europe as well as build upon what has been a consistently successful business in its own right for a number of years. 
 
“We are excited by this opportunity and are confident that this acquisition will generate further value for our shareholders.”