Telford based Luceco PLC grows with latest acquisition
Aaron & Partners LLP and Cooper Parry Corporate Finance advise on the sale of Kingfisher Lighting Limited to Luceco PLC
While Luceco might not be name you recognise, they own brands such as Masterplug and Ross, grossing £125m in annual sales from their Stafford Park base.
Kingfisher Lighting Limited (Kingfisher Lighting) have been acquired by Luceco PLC (Luceco), the manufacturer and distributor of high-quality and innovative LED lighting, wiring accessories and portable power products.
In what has been a great deal for the retiring founder and Chairman of Kingfisher Lighting, John Harding, Luceco announces it has acquired the entire issued share capital of Kingfisher Lighting for a total cash consideration of £9.75m on a cash-free, debt-free basis.
The management team of Kingfisher Lighting will remain with the Company and work with Luceco’s management team to integrate and grow the acquired business.
The acquisition will be funded through the Group’s existing banking facilities. The Board of Directors expects the transaction to be EPS accretive in the first full year of ownership.
Kingfisher Lighting is a nationwide UK supplier of exterior lighting products, including LED products, high-mast and street lighting systems and controls, as well as a provider of installation and maintenance services.
Kingfisher Lighting generated net revenue of £11.7m and EBITDA (adjusted for nonrecurring items) of £1.6m, with gross assets of £4.5m, in the financial year ended 31 March 2017.
John and Barbara Harding, Chairman, Director and major shareholders of Kingfisher Lighting, said: “After 29 years of running the family business, selling the business to Luceco PLC is a big moment in our lives. We’re grateful for the help and support of Sally Saunders and Cooper Parry Corporate Finance, Hugh Strickland at Aaron & Partners LLP and Larraine Boorman of Optima for bringing it to a satisfactory outcome. We believe we’ve passed the business on to secure hands, ensuring its future growth and prosperity for the existing employees of Kingfisher Lighting.”
Hugh Strickland, Partner at Aaron & Partners LLP led the deal alongside Aaron Vandermark, an associate in Aaron & Partners’ corporate team. Hugh said: “I’ve been advising John and Barbara at Kingfisher since 2010 – always with a long-term view to a handover of the business in time. It’s wonderful to see their hard work rewarded.”
Larraine Boorman, Non-Executive Director for Kingfisher Lighting, and Chairman and CEO at Optima, said: “It’s been great to support Kingfisher Lighting over the last nine years. Together with John and Barbara, we’ve had a strong relationship and seen the business grow and develop over time. It almost feels like we’ve come full circle as we hand the business over to Luceco. We wish the business well in its next stage of growth.”
John Hornby, Luceco Chief Executive Officer, said: “Kingfisher Lighting, with over 29 years’ experience, has an excellent reputation with its customers. By adding Kingfisher Lighting’s highly complementary sales team and outdoor lighting products to our product portfolio, Luceco will be able to further commercialise and deliver enhanced systems and services to both our private and public-sector customers. This first acquisition post our initial public offering demonstrates our capability to access new segments and distribution channels via market consolidation.”
The Cooper Parry Corporate Finance team was led by Corporate Finance Director, Sally Saunders, who said: “We’re delighted for John, Barbara and all at Kingfisher. We’ve worked with Kingfisher Lighting for a number of years and wish the business all the very best with their future growth plans.”
From left to right: Hugh Strickland, Barbara Harding, John Harding, Larraine Boorman and Sally Saunders