LPA Group PLC on Thursday said it has bought Red Box International Holdings Ltd, a UK manufacturer of aviation ground power equipment.
The Essex-based LED lighting and electro-mechanical systems maker said it will pay around £1.1 million for Redbox. Of this, £275,000 will be paid on completion and £825,000 post-completion.
‘Red Box is a leading UK manufacturer of aviation ground power equipment with global reach and an established presence in the US market,’ LPA said.
It added that the acquisition supports its ‘long-term growth strategy whilst also lessening the group’s dependence on rail projects.’
In 2022, Red Box reported revenue of £1.7 million, with adjusted earnings before interest and tax of £81,000.
LPA expects the acquisition to be ‘broadly neutral’ to financial 2024 profit, and earnings enhancing in financial 2025.
Chair Robert Horvath said: ‘The acquisition of Red Box is a demonstration of the opportunities available to the group to acquire businesses with high quality products and, within a relatively short period, high growth potential. Being part of LPA will provide scalability to boost Red Box’s success.’
Shares in LPA were flat at 84.12 pence each in London on Thursday morning.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
