(Alliance News) - Luceco PLC on Friday said it has bought D-Line (Europe) Ltd for up to GBP12.4 million.
The London-based lighting manufacturer and distributor said it has bought D-Line for an upfront payment of GBP8.6 million and up to GBP3.8 million of contingent consideration.
The contingent consideration consists of up to GBP3.0 million subject to achieving a transformational new business win; and up to GBP800,000 subject to the extent to which certain working capital balances crystallise.
"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," Luceco said.
For the year ended November 30, D-Line generated revenue of GBP17.0 million and underlying operating profit of GBP1.4 million.
The acquisition is expected to be earnings enhancing, achieving an operating margin consistent with that of the company, in its first full year of ownership.
Chief Executive John Hornby 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."
Shares in Luceco were down 1.0% to 138.46 pence each in London on Friday afternoon.
By Sophie Rose, Alliance News senior reporter
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Luceco (LUCE)