1 March 2024
LUCECO PLC - ACQUISITION OF
D-LINE
Luceco plc ("Luceco" or the "Company"), the supplier of wiring
accessories, EV chargers, LED lighting, and portable power
products, has acquired the entire issued share capital of D-Line
(Europe) Limited ("D-Line"), the supplier of cable
management solutions, from sellers including the founder for
initial cash consideration of £8.6m (the "Initial Consideration") and up to £3.8m
of contingent consideration (the "Contingent Consideration"), on a cash
and debt-free basis (the "Acquisition").
D-Line, headquartered in Tyne & Wear in the
UK, designs and supplies a range of innovative cable management
solutions, including decorative cable trunking and accessories,
fire-rated cable supports, floor cable protectors and cable
organisers. It employs approximately 60 people and supplies
retail, wholesale and eCommerce customers mainly in the UK, Europe
and North America. The business supports its customers in
North America from a sales and distribution facility in Kentucky,
USA.
The purchase price is subject to a closing cash,
debt and working capital adjustment. The Initial
Consideration has been funded from Luceco's existing debt
facilities. The Contingent Consideration consists of up to
£3.0m subject to achieving a transformational new business win; and
up to £0.8m subject to the extent to which certain working capital
balances crystallise.
For the unaudited 12 month period ended 30
November 2023 D-Line generated revenue of £17.0m and underlying
operating profit of £1.4m. Gross assets at the end of the
period were £8.1m. The Acquisition is expected to be earnings
enhancing, achieving an operating margin consistent with that of
the Company, in its first full year of ownership.
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."
Luceco plc
|
Contact
|
John Hornby, Chief Executive
Officer
|
020 3128 8100 (Via MHP)
|
Will Hoy, Chief Financial
Officer
|
020 3128 8100 (Via MHP)
|
|
|
MHP
|
Contact
|
Tim Rowntree
|
020 3128 8100
|
Ollie Hoare
|
07817 458 804
|
Note
to Editors
Luceco plc - Bringing Power To Life
Luceco plc (LSE:LUCE) is a supplier
of wiring accessories, EV chargers, LED lighting, and portable
power products.
For more information, please
visit www.lucecoplc.com.