F W Thorpe has acquired Famostar in the Netherlands, an emergency lighting provider.
The acquisition is expected to enhance earnings per share in the first full financial year of ownership (to 30 June 2019), as well as complementing the company's existing technologies, providing potential growth opportunities and synergies.
It is expected to make a minor contribution to group profits in the year ending 30 June 2018.
F W Thorpe has paid an initial consideration of €7.6m (circa £6.8m), with up to an additional €0.5m (circa £0.4m) payable subject to performance conditions relating to the EBITDA for 2017 and 2018.
The Famostar investment will be acquired via Lightronics Participaties.
The initial consideration has been funded from the company's existing cash reserves.
During its last financial year ended 31 December 2016, Famostar achieved revenues of €6.8m and adjusted profit before tax of €0.9m. For the year ending 31st December 2017 forecast revenues are €7.8m, with an adjusted profit before tax of €1.2m. Net assets as at 31 December 2016 were €2.9m.
The addition of Famostar will further develop the Lightronics presence in the Netherlands and expand its emergency lighting product portfolio.
At 9:40am: (LON:TFW) Thorpe F W PLC share price was +9.13p at 358.5p