F W Thorpe buys Netherlands-based Famostar

AIM-listed F W Thorpe has announced the acquisition of Famostar, a Dutch specialist in emergency lighting for a range of different sectors, for an initial consideration of €7.6m (£6.8m).

The acquisition is expected to enhance earnings per share in the first full financial year of ownership and to complement the company's existing technologies, providing potential growth opportunities and synergies. It is expected to make a minor contribution to group profits in the year ending 30 June 2018.

As well as the initial consideration, F W Thorpe will pay up to €0.5m subject to performance conditions relating to the earnings before interest, taxes, depreciation and amortisation for 2017 and 2018. The initial consideration has been funded from the company's existing cash reserves.

Famostar will be bought through Thorpe's holding company in the Netherlands, Lightronics Participaties. The senior management team will remain in the business and report directly to the board of Lightronics.

During its last financial year ended 31 December 2016, Famostar achieved revenues of €6.8m and adjusted pre-tax profit of €0.9m.

At 1010 GMT, the shares were down 2.1% to 342p.