SYDNEY, AUSTRALIA: FOS Capital Ltd (ASXFOS), a leading Australian lighting manufacturer, has announced that it will acquire KLIK Systems, a Sydney based linear lighting specialist, for $3 million. The deal is expected to be completed within two weeks and will be funded with existing cash and debt facilities.
KLIK Systems has over 40 years of experience in producing commercial, industrial and architectural LED linear and handrail lighting. It has 31 employees and operates in Australia and overseas, with 25% of its income coming from export markets, mainly the USA.
The acquisition will increase FOS Capital’s market share in linear lighting, which is its fastest growing product line. It will also provide FOS Capital with significant operational benefits, such as cost reduction, knowledge sharing and resource consolidation. Additionally, it will give FOS Capital access to new export markets and opportunities to expand its product range.
FOS Capital’s Managing Director Con Scrinis said: “This transformative acquisition of KLIK is the next chapter in establishing FOS as the pre-eminent Australian lighting manufacturer.”
As a condition of sale, KLIK Systems will relocate its factory by December 2023. The acquisition is expected to add $1.5 million to FOS Capital’s EBITDA and increase its EPS from 1.09c to 2.49c.
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