Carclo subsidiary acquires Czech company FLTC (Europe)

Carclo's shares are up almost 5% after subsidiary Carclo Overseas Holdings Ltd acquired FLTC (Europe) a.s. for an initial consideration of CZK27m, or about £0.9m, in cash, plus further deferred consideration of up to CZK16.2m.

Carclo's board expected the acquisition to result in a modest improvement in group profitability in the first full year following completion, citing FLTC's lower cost base compared to Wipac's equivalent design resources in the UK.

The deferred consideration was subject to the satisfaction of certain performance criteria. Completion was linked to cash and working capital adjustments.

FLTC is an independent automotive design company based in Ostrava, in Czech Republic, and employed 35 designers, electronics and CAD engineers solely focussed on automotive LED lighting design.

At 12:33 GMT, shares in Carclo were up 4.69% to 134p each.