FAGERHULT is set to buy the leading Italian architectural lighting company iGuzzini in a spectacular coup, Lux can reveal.
The ambitious Swedish group signed a letter of intent this morning with the shareholders of iGuzzini to acquire 100 per cent of the shares of the company. No financial details have been disclosed.
Fagerhult now has exclusivity to conduct due diligence on the firm – an investigation into its books – and is targeting signing a share purchase deal before Christmas.
The finalising of the transaction will be subject to Fagerhult’s board approval and clearance by European competition chiefs. The transaction will be funded from a combination of debt and a new rights issue in Fagerhult shares.
On finalising the transaction, the Guzzini family will receive a significant portion of the consideration in Fagerhult shares with the aim of becoming shareholders of the combined entity. iGuzzini president Adolfo Guzzini and CEO Andrea Sasso – in addition to remaining in their respective executive roles within iGuzzini – will assume top jobs in the senior management team of Fagerhult
Fagerhult says the addition of iGuzzini will significantly strengthen its position in the professional lighting market, both in terms of the geographic presence and by adding a complementary product range.
iGuzzini is an innovative and respected professional lighting brand with a high brand awareness particularly amongst specifiers. It’s understood the company was initially considering an Initial Public Offering, slated for this year, but decided on an outright sale to another lighting manufacturer.
The company designs, manufactures and markets professional lighting luminaires for both the indoor and outdoor applications. Its highly innovative luminaires include the Dean Skira-designed Trick, the Laser Blade and the Laser downlight range.
Founded in 1959 the company is based in Recanati, Italy. In the financial year ending December 2017, the company had 1,300 employees, and sales of approximately £202 million (€230 million, USD $266 million).
Fagerhult’s last major acquisition was for LED Linear in a £35 million (€40 million, USD$46 million) deal in 2016. Over the course of the last decade, it has made no fewer than ten strategic acquisitions.
These include Turkish lighting firm Arlight (2014), Finnish fixture manufacturer I-Valo (2013), UK industrial and transport lighting specialist Designplan (2011), retail lighting specialist LTS (2010), Spanish agent Fagerhult SL (2009), after-sales service company Commtech Commissioning Services (2009), Belgian architectural fitting maker Waco (2009), Australian lighting company Eagle Lighting (2007) and Irish lighting firm Project Lighting Equipment (2007).
Fagerhult Group’s recently-appointed CEO Bodil Sonesson has continued the company’s aggressive acquisition policy.
Formerly vice president of global sales at Swedish security-camera stalwart Axis Communications, Sonesson replaced Johan Hjertonsson, who became CEO of investment firm Investment AB Latour, which owns nearly half of Fagerhult. Fagerhult has annual sales of £440 million (€501 million, USD$592 million).
- Read Ray Molony’s analysis of the planned Fagerfult acquistion of iGuzzini HERE.
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