The transaction is worth 161 million euros.
Acquisition of the Danish company means that Targetti Group becomes the fourth European operator in the architectural lighting sector.
The acquisition which, in accordance with the agreement entered into on June 27 2007, allows Targetti Sankey S.p.A., to indirectly hold 92.5% of the share capital of the Danish company, Louis Poulsen Lighting A/S, one of the European leaders in the high-end architectural lighting sector, was finalised today.
Specifically, 100% of Holdingselskabet af 3. November 2005 A/S (“Holding”), a Danish company, was directly acquired. The latter, in turn, holds 85% of Louis Poulsen Lighting and a 50% shareholding in LAMP Invest ApS which holds the remaining 15% of Louis Poulsen Lighting.
The remaining 7.5% of Louis Poulsen Lighting is indirectly held by Peter Thorsen, CEO of Louis Poulsen, through a shareholding in the remaining 50% of LAMP Invest ApS, with a 12.6 million euro option to sell by February 2008. In the event the option is exercised, Targetti would indirectly hold 100% of Louis Poulsen Lighting A/S.
The overall investment Targetti Sankey disbursed for the acquisition amounts to approximately 161 million euros (155.4 million euros of which in equity value), plus all costs related to the transaction.
The acquisition, performed using an auction sale, was completely debt financed, mainly provided by a Fortis Bank medium-long term credit facility.
Louis Poulsen Lighting achieved a consolidated turnover of 111.0 million euros in 2006, and a consolidated gross operating margin[1] (EBITDA) of 13.4 million euros, equal to 12.1% of turnover, while consolidated net profit amounted to 5.4 million euros.
The net financial position[2] at 31 December 2006 was negative for 15.6 million euros.
The figures[3] related to the consolidated financial statements of Louis Poulsen A/S are drafted in compliance with Danish accounting standards.
The current shareholders of Holding are P-LP 1999 A/S and H&D Invest A/S, owning 50% each.
With regard to the acquisition, Cazenove acted as Advisor for Targetti while the legal consultant was Pavia & Ansaldo.
The acquisition allows Targetti to considerably strengthen its competitive position at a continental level, generating one of the leading European groups in the lighting sector: specifically, it is estimated that Targetti Group will become the number four player in Europe in term of sales in the architectural lighting sector, core business of the company'.
The acquisition will also make it possible to achieve numerous commercial and industrial partnerships in the medium-long term, thanks also to the geographical complementarity of production plants and reference markets. Specifically, Targetti will expand its presence in Northern Europe where Louis Poulsen Lighting holds a major share of the market, and will consolidate its presence in the United States and Japan where Louis Poulsen Lighting is one of the leading independent operators.
“We completed the acquisition in compliance with the planned timeframe and procedures - commented Lorenzo Targetti, CEO of Targetti Sankey S.p.A. - The acquisition is of key importance for our growth, and upon termination of a in-depth integration process with a top-standing company as is Louis Poulsen, will allow Targetti Group to obtain a key position on the international scene”.
Targetti Group is one of the leading players in Europe in the indoor and outdoor lighting sector. A network of nine highly specialised companies which draw their strength from a firmly-established tradition and natural vocation for research. Thanks to the perfect combination of design and technology, Targetti devices are used to light universal masterpieces such as Michelangelo's David, Da Vinci's Last Supper and Notre Dame Cathedral, and are used in a wide range of settings: from the Singapore Opera House to the airports in Madrid, Canton and Paris; from the showrooms of Bulgari, Benetton, Celine and Diesel to McLaren’s Formula 1 boxes; from companies such as Peugeot, Citröen and Alfa Romeo to the world's leading hotel chains, through to over 4,000 small and large towns where light …. equals Targetti.
Contact: Marco Cisbani Massimiliano Parboni
Targetti Sankey S.p.A Barabino&Partners
Telephone 055/3791.203 Telephone 06/679.29.29
[1] The gross operating margin (EBITDA) is an intermediate operational indicator obtained from the operating margin adjusted for depreciation, allocations and write-downs.
[2] The Net Financial Position is calculated subtracting from the cash and bank accounts the financial debts to banks and other lending institutions.
[3] These financial data, originally showed in Danish Crowns (DKK), were translated in Euros utilizing the average yearly exchange rate for the Income Statement items and the year-end exchange rate for the Balance Sheet ones. |
