Acquisitions and divestments
Over the course of the last decade, Fagerhult has acquired some ten companies. Acquisitions are an important part of Fagerhult’s business model, and, as such, an essential part of the Company’s long-term growth strategy. Valuable knowledge and experience have been integrated into a decentralised model which creates a platform for successful integration.
LED Linear GmbH
In March 2016 Fagerhult acquired LED Linear GmbH based in Neukirchen-Vluyn, Germany.
LED Linear GmbH has with world class linear LED lighting solutions, a cutting edge integrated manufacturing capability and award winning products and brand successfully established a global sales presence with more than half of the net sales outside Europe, mainly in North America and Asia.
Fagerhult has completed the acquisition in October 2015 of the assets of Lighting Innovations based in Port Elizabeth, South Africa, and the assets of the subsidiary companies Beacon Lighting and Arrow Lighting. Lighting Innovations has a strong possition on the South African market and several interesting growth opportunities within the dynamic Sub Saharan Africa region.
At the end of 2013, Fagerhult signed an agreement to acquire the Turkish lighting company Arlight and the transaction was finalised in February 2014. Arlight has a strong position on dynamic Turkish market with application areas that include offices, schools, hospitals, shopping malls and airports. With a modern manufacturing facility outside Ankara, Arlight gives the Fagerhult Group access to low cost production near main markets. Arlight had 160 employees and net sales of 21 MEUR in 2013.
In order to further strengthen the Fagerhult Group position in the European lighting market as well as adding a complementary product range, Fagerhult acquired 100% of the shares of I-Valo Oy based in Iittala, Finland. The acquisition has a positive effect on the earnings per share during 2013 and forward. I-Valo manufactures lighting fixtures and solut ions primarily for industrial applications located in very demanding conditions. Example application areas include paper and pulp as well as mining and bio energy industries. In 2012 the company had 60 employees and net sales of 10 MEUR.
Designplan Lighting Ltd
To further strengthen its position on the British market, as well as to create a new product segment for the international market, Fagerhult acquired, as of March 2011, 100 % of the shares in Designplan Lighting Ltd, with its registered offices in Sutton, UK. The preliminary purchase price was calculated at MSEK 127.9, of which MSEK 11 comprised additional purchase price. After reconciliation, it was not necessary to pay the additional purchase price, for which reason the final purchase price has been reported at MSEK 116.9. The unpaid purchase price has been recognised as income under other income
LTS Licht & Leuchten GmbH
To strengthen its position within Retail Lighting, as well as to create a platform for growth in the important German market, Fagerhult acquired, as of 1 October, a total of 100% of the shares in LTS Licht & Leuchten with registered offices in Tettnang, Germany. The Company engages in the manufacture of lighting systems primarily within the Retail segment and has 230 employees. Sales in 2010 amounted to just over EUR 47 million with an operating income of approx. EUR 11 million.
Fagerhult SL and Commtech Commissioning Services
Effective 1 January, a 100 percent stake was acquired in the Spanish company Fagerhult SL, who has acted as an agent for Fagerhult, and a 100 percent stake was acquired in Commtech Commissioning Services, which is an aftersales service company in lighting and ventilation. The companies have offices in Laz Rozas outside Madrid and have a turnover of MSEK 30, with 13 employees. The purchase price amounts to MEUR 1.25 with a maximum additional purchase sum of MEUR 0.8
In 2007, Fagerhult acquired a 50 percent stake in the Belgian lighting company, Waco, with an option to purchase the remaining shares in 2009. This option was exercised in early July. The company develops and manufactures products for retail purposes and other applica-tions with high design content. Since 2007, sales have primarily been governed by Fagerhult.
Eagle Lighting (Australia) Pty Ltd
Per 1 June Eagle Lighting of Australia was acquired through an assets and liabilities deal. Eagle Lighting, with net sales of MSEK 100, is a company specialising in professional lighting and with strong future growth prospects within this segment in Australia. The company’s headquarter, factory and distribution centre is located in Melbourne with sales offi ces in both Sydney and Brisbane. The purchase price which is maximised to MAUD 14 consists of MAUD 8.6 in cash with an additional purchase price of up to MAUD 5.4 depending on the profi t/loss development up until June 2008.
Project Lighting Equipment Ltd, Ireland
On the last day of June, 100 percent of the shares in the Iris h company Project Lighting Ltd were acquired. The company, with net sales of MSEK 20, has its offi ce and distribution center in Dublin and has 5 employees. The purchase price consists of M € 1.1 in cash and 20,000 shares in AB Fagerhult and an additional purchase price of M € 0.5 to be paid in 2009. The value of the shares is calculated based on the exchange rate on the date of the acquisition, SEK 153.
During the year, 50 percent of the Belgian lighting company WA CO was acquired with the option of purchasing the remaining 50 percent of the shares in 2009. WACO develops and manufactures lighting fi ttings for business purposes with a high level of design innovation. The company has a turnover of M € 2 and 10 employees. A purchase price of 11 MSEK has been paid.
LampGustaf Inredning AB and Fagerhult HK Sourcing Ltd
LampGustaf Inredning AB and Fagerhult HK Sourcing Ltd were sold 6 August 2007 to Vätterleden Invest AB for the amount of MSEK 6.9 with a capital gain of MSEK 2.7. The business of the companies were attributable to the segment Home Lighting. The turnover and result for the fi rst 6 months of the year are included in the Group ?s accounts. For the year 2006 the turnover amounted to MSEK 94 and the operating loss to MSEK -0.3.
AB Falkenbergs Belysning
During the year, AB Falkenbergs Belysning was sold. The company’s primary asset was an industrial building in Örnsköldsvik. The purchase price amounted to MSEK 12.5 and resulted in a capital gain of MSEK 7.0.