The companies plan to combine Projection’s display lighting portfolio with Lumenpulse’s proprietary technologies to target the market for 'smart' lighting and increase their geographic reach.
Lumenpulse – whose Lumentalk control technology is already integrated into Projection’s AlphaiLED range of intelligent luminaires – will continue to integrate its technologies into Projection’s products, as well as bringing them to the North American market by obtaining the necessary certification and building a sales force.
Lumenpulse said the transaction would allow it to ‘expand its addressable market with a wide variety of complementary LED solutions; and accelerate its expansion into new geographical markets served by Projection’.
Projection won last year's Lux Award for Manufacturer of the Year. CEO Gary Heald (pictured at the Lux Awards), who founded the Manchester-based company in 1991, will step down and serve in an 'advisory role' following the acquisition, with export and operations director Simon Morrison taking over the running of the business.
‘Combining strengths will create added momentum for growth,’ said Heald. ‘By expanding our products into each other’s channels and markets, there is great potential for revenue enhancement synergies. For Lumenpulse, it opens new doors in the retail, hospitality and museum markets, while Projection's products have the possibility to integrate Lumenpulse’s proprietary and patented technologies, and access North American channels,’ he said.
‘We are pleased to join forces with a reputable player in the LED lighting industry,’ said François-Xavier Souvay, president and CEO of Lumenpulse. ‘We were drawn to well-designed, versatile and high-performance products, which are in line with the Lumenpulse philosophy. We will also welcome an experienced management team with deep industry knowledge,’ he said.
In the twelve months to April 30, 2014, Projection generated revenues £11.3 million and pre-tax earnings of £2.3 million. The £16.6 million deal to buy the company includes £2.9 million of working capital.
Lumenpulse said the acquisition is expected to be ‘immediately accretive’.
As a result of the transaction, approximately 50 new employees will join Lumenpulse, with certain ‘key employees’ to receive stock worth a total of £1 million.