(Alliance News) - LPA Group PLC on Monday said it received approval for the purchase of railway inter-carriage connectors from Amphenol Ltd.
This comes after the Essex-based LED lighting and electro-mechanical systems maker conditionally agreed to buy Amphenol's product line for GBP500,000.
It replaces a ten-year licensing agreement between LPA and Amphenol,which was signed in May 2021. Under the original agreement, LPA undertook the manufacture and supply of Amphenol connectors to the UK rail aftermarket customer base. The profit from the product line was shared on a 50-50 basis between the two parties.
However, the acquisition allows LPA to continue to manufacture and supply the railway inter-carriage electrical connectors directly to the customer, and now retaining all associated profits.
The revenue for this product line for the year ended September 30, 2022, was GBP388,000, with a total pretax profit of GBP115,000 split between the two parties.
Amphenol is a Whistable, England-based connector manufacturer.
Shares in LPA were trading flat at 85.00 pence each in London on Monday midday.
By Sabrina Penty, Alliance News reporter
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