Telford lighting business in £9.75m acquisition
Telford lighting business Luceco has completed the £9.75 million takeover of an industry competitor.
In the first such move since its flotation on the London Stock Exchange last year the company has taken over Kingfisher Lighting, which is based in Mansfield in Nottinghamshire and which employs 71 people.
It comes as the company's founder retires from the business, and will be funded entirely from Luceco's existing banking facilities. Kingfisher's management team will stay with the group to "integrate and grow the business".
Luceco chief executive John Hornby said: "Having spent over 29 years in business, Kingfisher Lighting has an excellent reputation with its customers.
"By adding Kingfisher Lighting's highly regarded sales team and complementary outdoor lighting products to our portfolio, Luceco will be able to deliver enhanced systems and services to both our private and public sector customers."
For the year to March 31 Kingfisher Lighting generated revenue of £11.7 million and pre-tax earnings of £1.6m. It has gross assets of £4.5m.
It 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.
Hugh Strickland, partner at Shrewsbury firm Aaron & Partners, led the deal alongside Aaron Vandermark, an associate in the law firm's corporate team.
Hugh said: “I’ve been advising John and Barbara Harding 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.”
The Cooper Parry Corporate Finance team also advised on the deal, 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.”
Last week Luceco announced that its sales rose by a quarter to £75.3 million in the first half of the year, with operating profit also up at £9 million.
Luceco has its UK sales base on Stafford Park in Telford, where it employs 200 people at a 110,000 sq ft site.
It floated on the London Stock Exchange a year ago, in a move which valued the company at £209 million.
