SYDNEY, AUSTRALIA: FOS Capital Ltd (ASX:FOS) via its subsidiary FOS Lighting has entered into a binding agreement to acquire Queensland based linear lighting manufacturer Hawko Lighting Group.
FOS is funding the acquisition via a $1.5 million professional and sophisticated investor placement. Morgans Corporate Ltd acted as Financial Advisor to the Offer. The transaction is expected to be completed within two weeks.
Hawko Lighting was established over 30 years ago and is based on the Sunshine Coast, Queensland. It manufactures an extensive range of commercial, industrial & architectural LED linear lighting. The company has 14 employees and services the Australian commercial lighting market with distributors in all capital cities.
This acquisition expands FOS Capital’s market share in linear lighting and provides additional manufacturing capacity for fastest growing product line. There will be significant operational benefits with the increased volumes and the ability to further rationalise fixed costs.
FOS Capital will also leverage its significant sales and distribution network in Australia and New Zealand to expand Hawko’s reach in the Australian market.
“We have made significant progress in our first year as a listed company. The acquisition of Hawko and associated capital raising continues FOS’s stated commitment to grow organically and by acquisition and bolsters an already strong debt-free balance sheet,” said Managing Director Con Scrinis.
“We take this opportunity to thank new and existing shareholders for supporting the capital raising as we continue the positive momentum.”