Alumasc Acquires Levolux For £13.5 Million
Alumasc (ALU.L), the premium building and engineering products company, announces the acquisition of Levolux Limited and Levolux AT Limited (together, “Levolux”), the UK’s leading supplier of solar shading systems for buildings, for a total consideration of £13.5 million.
The consideration will be satisfied by the payment of £12.3 million in cash and the issue to the vendors of 541,760 new ordinary shares in the Company equivalent to £1.2 million at a share price of 221.5p1. The vendors of Levolux have undertaken not to sell any of the new ordinary shares for a period of at least 24 months. The £12.3 million cash consideration was met from a new five year revolving credit facility provided by Lloyds TSB Bank plc.
Levolux designs, manufactures and installs internal and external shading systems which are used to control the impact of sunlight on a building’s internal environment. These systems, which include Brise Soleil, Aerofoil Fins, Louvres, External and Internal Blinds, are increasingly specified in new buildings and refurbishment projects in order to improve energy performance and the comfort of occupants. As a result of working closely with architects and other specifiers, Levolux systems are frequently an integral part of a building’s functional and aesthetic design.
In the 11 months to 31 March 2007, Levolux’s unaudited operating profit was approximately £2.5 million on turnover of £19 million, compared with audited operating profit of £514,000 (after deducting bonuses to the owners) on turnover of £15.9 million for the year to 30 April 2006. At 30 April 2006, it had net assets of £1.8 million and gross assets of £6.6 million.
Levolux operates from two leasehold sites, one in Harrow, Middlesex, and the other in Gloucester. It is Alumasc’s intention to continue the development of Levolux from its present sites.
Reasons for the Acquisition
The acquisition of Levolux fits at the core of Alumasc’s strategy to develop the group’s high performance building products activities. Alumasc is already a supplier to the building industry of “sustainable” products such as Zinco green roofs and Gatic Slotdrain. Levolux will add significantly to Alumasc’s portfolio of sustainable building products and will grow the opportunity, believed to be substantial, for developing markets for these products outside the UK.
The existing team, including John and Pamela Stern, the two principal shareholders, will continue to manage Levolux.
Chief Executive, Paul Hooper, commented: “The opportunity to acquire such a high quality brand leader in the sustainable building products market does not often present itself.With the introduction of the updated Document L building regulations aimed at reducing the UK’s carbon emissions in commercial buildings, Levolux is in a strong position to assist architects in meeting such important demands as well as contributing to external and internal design aesthetics. We are excited to welcome Levolux into The Alumasc Group and we look forward to building on the success of the business to expand further in the UK and overseas. Levolux will spearhead The Alumasc Group’s growing presence in sustainable “green” building products.”