Fagerhult has signed a Letter of Intent to acquire 100 percent of the shares of iGuzzini. No details of the amount involved have been released, but the acquisition does appear to be amicable.
As usual, the transaction is subject to Fagerhult board approval and any anti-competition approvals that may be required. The acquisition will be funded from a combination of debt finance and a new issue of Fagerhult shares; the Guzzini family will receive a significant portion of the purchase amount in Fagerhult shares and will therefore become shareholders in the combined entity.
Adolfo Guzzini, president of iGuzzini, and iGuzzini CEO Andrea Sasso will continue in their executive positions at iGuzzini and will also take “important roles” in the top management of Fagerhult.
Fagerhult’s statement says the addition of iGuzzini will significantly strengthen the Fagerhult Group’s position in the professional lighting market both in terms of the geographic presence and by adding leading complementary product ranges.
iGuzzini is a respected brand, particularly amongst specifiers. Founded in 1959, the company is headquartered in Recanati, Italy (above); it designs, manufactures and markets professional lighting solutions for both the indoor and outdoor sectors. In its last financial year (to December 2017) the company had sales of approximately €230 million, employed around 1,300 people, and was active in over 20 countries.
Fagerhult is considerably larger, with approximately 3,450 employees and operations in more than 25 countries. In its recently published interim report for the first nine months of 2018, the group was showing overall sales growth of 7.3 percent, a static profit, and an operating margin of 12 percent. The report concluded that Fagerhult was continuing to deliver “solid” results while the lighting industry is experiencing some challenges.