LED lighting manufacturer Luceco buys Kingfisher Lighting

LED lighting manufacturer Luceco buys Kingfisher Lighting

In what may be the perfect deal for retiring chairman of Kingfisher Lighting, John Harding, Luceco has announced the acquisition of 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 generated a net revenue of £11.7 million and earnings before interest, tax, depreciation and amortization (EBITDA) (adjusted for nonrecurring items) of £1.6m, with gross assets of £4.5m, in the financial year ended 31 March 2017.

John Harding, chairman and major shareholder 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.”

Published: 18 September 2017

Article by Chris Middleton
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