The acquisition is expected to enhance earnings per share in the first full financial year of ownership (to 30 June 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 30 June 2018.
F W Thorpe has paid 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 Famostar investment will be acquired via Lightronics Participaties B.V., our holding company in the Netherlands and be subject to similar share appreciation conditions established when F W Thorpe acquired Lightronics in 2015.
The initial consideration has been funded from the Company's existing cash reserves and this is the intention for any additional consideration.
The senior management team will remain in the business and report directly to the board of Lightronics B.V.
About Famostar
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. Famostar was originally established in 1947, is based in Velp and currently employs 31 people.
During its last financial year ended 31st December 2016, Famostar achieved revenues of €6.8m and adjusted profit before tax of €0.9m. For the year ending 31st December 2017 forecast revenues are €7.8m, with an adjusted profit before tax of €1.2m. Net assets as at 31stDecember 2016 were €2.9m.
The addition of Famostar will further develop the Lightronics presence in the Netherlands and expand its emergency lighting product portfolio.
Chairman, Mike Allcock commented:
“I would like to welcome Famostar to the F W Thorpe group. 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.”