'Natural fit' as Telford's Luceco makes £12.4m acquisition
A Telford lighting, electrical and global power giant has announced a £12.4m deal for a cable supplier.
Luceco, a designer and manufacturer of LED lighting products, has acquired D-Line (Europe) Limited for an initial cash consideration of £8.6 with the potential for a further £3.8m subject to achieving a transformational new business win and if certain working capital balances materialise.
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.
D-Line generated revenue of £17m and underlying operating profit of £1.4m last year while gross assets at the end of the period were £8.1m.
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, said: "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."
