LONDON, UK: LPA Group plc, the innovation-led engineering specialist in electronic and electro-mechanical components and systems, announced the acquisition of Red Box International Holdings, a UK manufacturer of aviation ground power equipment.

The total consideration for the acquisition is expected to be approximately £1.1m, of which £275,000 is being satisfied on completion, and £825,000 payable post-completion.

Red Box is a leading UK manufacturer of aviation ground power equipment with global reach and an established presence in the USA market. The Acquisition will provide a strong addition to LPA Connection Systems, the Group’s Saffron Walden-based division, that designs, manufactures and supplies high quality specialist products for the aviation, rail, and infrastructure markets.

This acquisition supports our long-term growth strategy whilst also lessening the Group’s dependence on rail projects.

Red Box revenues for the year ended 31 December 2022 were £1,677,000, with adjusted EBIT of £81,000. Net assets as at 31 December 2023 were c.£750,000. The Acquisition is expected to be broadly neutral to FY2024 profit, and earnings enhancing in the Group’s FY2025.

Robert Horvath, Chairman of LPA said: “The acquisition of Red Box is a demonstration of the opportunities available to the Group to acquire businesses with high quality products and, within a relatively short period, high growth potential. Being part of LPA will provide scalability to boost Red Box’s success. We look forward to welcoming Ian Harding and Red Box to the LPA Group.”

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