REG - Luceco PLC - Acquisition

LucecoAnnouncement

01/03/2024 07:00

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RNS Number : 0678F  Luceco PLC  01 March 2024

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

 

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