Fagerhult signs an agreement to acquire Arlight
In order to further strengthen the Fagerhult Group position in the European lighting market as well as expanding into the Turkish market, Fagerhult has signed an agreement to acquire 100% of the shares of Arlight based in Ankara, Turkey. The acquisition is expected to have a positive effect on the earnings per share during 2014 and forward.
Arlight has 160 employees and manufactures lighting fixtures and solutions primarily for the indoor commercial sector. Example application areas include commercial offices, educational buildings, hospitals, shopping malls and airports. In 2013, the company is forecast to have sales of 21 MEUR and a profitability well above the Fagerhult Group average.
“Our strategy is to become a clear leader in the European lighting industry. With this acquisition we gain access to the dynamic Turkish market and several interesting growth opportunities in the region. The Turkish lighting market is experiencing strong growth driven by the country’s 2023 ambitions on improving infrastructure and energy efficiency. This acquisition also gives us access to a low cost manufacturing facility located near our large existing markets. I am also very pleased that Mr. Mustafa Cemil Arli and Mrs. Gülseren Arli will remain with the company and build on the strong recent performance of Arlight”, comments Johan Hjertonsson CEO Fagerhult.
Fagerhult pays a price of MEUR 28, on a cash and debt free basis, for 100% of the shares in Arlight, pending regulatory approval from the Turkish Competition Authority. The deal is expected to close in the first quarter 2014. An additional 7 MEUR can be paid as earnout until 2015 tied to company performance. The transaction is financed with existing credit facilities.
More information on Arlight is available at www.arlight.net.
Habo December 20, 2013
Disclosures may be submitted by
Johan Hjertonsson CEO tel: 46 36 10 87 06 mobile: 46 70 229 77 93 e-mail: email@example.com
Håkan Gabrielsson CFO tel: 46 8 52 23 59 48 mobile: 46 70 84 40 918 e-mail: firstname.lastname@example.org
Fagerhult is one of Europe’s leading lighting groups with approximately 2,200 employees and operations in 20 countries. We create modern products and exciting, energy-efficient and environmentally-adapted lighting installations, successfully integrated into their individual environments. The Group includes such strong brands as Fagerhult, Ateljé Lyktan, LTS, Whitecroft Lighting, Designplan Lighting and I-Valo. AB Fagerhult is listed on the Nasdaq OMX Nordic Exchange in Stockholm.