REG - Luceco PLC - Acquisition of CMD

LucecoAnnouncement

30/09/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240930:nRSd1255Ga&default-theme=true

RNS Number : 1255G  Luceco PLC  30 September 2024

30 September 2024
 

 

LUCECO PLC - ACQUISITION OF CMD

Luceco plc ("Luceco"), the supplier of wiring accessories, EV chargers, LED
lighting, and portable power products, has acquired CMD Limited ("CMD"), the
market-leading manufacturer of wiring accessories for the workplace, through
the acquisition of its ultimate parent company, Baltic Topco Limited, from
Rubicon Partners and management for cash consideration of £30.0m (the
"Consideration"), on a cash and debt-free basis (the "Acquisition").

CMD (www.cmd-ltd.com), founded in 1984, designs and manufactures a
comprehensive range of wiring accessories for commercial premises, where it
holds a leading position in the UK.  Products include under-floor and
under-desk power distribution solutions, on-desk and in-desk sockets, and a
range of ergonomic products including the award-winning Miro monitor support
arm.  CMD has an experienced senior management team which will remain with
the business, continuing to operate from its  headquarters in Rotherham.

For the audited 12-month period ended 31 December 2023 CMD reported revenue of
£23.1m and earnings before interest, tax, depreciation and amortisation
("EBITDA") of £4.0m.  The Acquisition is expected to be earnings enhancing
in its first full year of ownership.

The Consideration is subject to a closing cash, debt and working capital
adjustment.  The Consideration has been funded from Luceco's existing
revolving credit facility, which has been expanded by £40m via the accordion
facility available under the terms of its syndicated bank facilities.  The
post-acquisition Bank Net Debt : EBITDA ratio is approximately 1.7x on a
pro-forma (end August 2024) basis.

John Hornby, Chief Executive Officer of Luceco commented:

"Luceco has a well-established position as a leading supplier of wiring
accessories to the residential market in the UK so CMD, with its leading
position in the commercial wiring accessories market, is a very natural fit.
The Group's expertise in product development, manufacturing and sourcing will
enable us to accelerate range innovation and improve margins for CMD.  We
also see an opportunity to offer Luceco's professional lighting range to CMD's
customer base of specifiers and contractors.  The acquisition is in line with
our M&A strategy and follows the successful acquisition of D-Line earlier
in the year."

Jon Holding, Managing Director of CMD commented:

"CMD has been successful over many years thanks to its hard-won reputation for
consistently delivering excellent customer service.  The management team and
I are excited for the next chapter and look forward to growing the business
with Luceco behind us."

For further information, please contact:

 Luceco plc                            Contact
 John Hornby, Chief Executive Officer  (Via MHP)
 Will Hoy, Chief Financial Officer

 MHP                                   Contact
 Tim Rowntree                          07817 458 804
 Ollie Hoare

 

For the purposes of MAR and Article 2 of Commission Implementing Regulation
(EU) 2016/1055, this announcement is being made on behalf of Luceco plc by
Will Hoy, Chief Financial Officer.

LEI: 213800BBFZK4W4P98U76

 

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
(http://www.lucecoplc.com) .

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQPPURGBUPCGQB