Login | Register
Profile | Log out
logo

  • Home
  • News
  • Opinion
  • Other
    • Market Updates
    • Explainers
    • Satire
  • About
  • Contact Us
    • Contact
    • Get Covered
    • Posting Guidelines
  • Subscribe
Submit An Article

Latest Articles

  • Fragrances to treat allergies? Microba and IFF enter stage two of novel treatments
    Fragrances to treat allergies? Microba and IFF enter stage two of novel treatments
    • News

  • RAS Technology dives deeper into European wagering with Playbook Engineering partnership
    RAS Technology dives deeper into European wagering with Playbook Engineering partnership
    • News

  • BluGlass signs $2.6 million contract with North Carolina State Uni to develop lasers
    BluGlass signs $2.6 million contract with North Carolina State Uni to develop lasers
    • News

  • Markets continue to push higher as Powell signals peak rates
    Markets continue to push higher as Powell signals peak rates
    • Market Update

  • Amid debt dispute, Electro Optic Systems reports revenue guidance of $210 to $230 million
    Amid debt dispute, Electro Optic Systems reports revenue guidance of $210 to $230 million
    • News

  • Use your mobile to check for arrhythmia as Advanced Health Intelligence launches AF-Scan
    Use your mobile to check for arrhythmia as Advanced Health Intelligence launches AF-Scan
    • News

  • The Calmer Co reports monthly record of eCommerce kava sales thanks to Black Friday
    The Calmer Co reports monthly record of eCommerce kava sales thanks to Black Friday
    • News

  • US markets see late drive higher, XJO to open flat
    US markets see late drive higher, XJO to open flat
    • Market Update

  • Little Green Pharma has big news: a new CEO and 37% revenue growth
    Little Green Pharma has big news: a new CEO and 37% revenue growth
    • News

  • The BESS-T bet: GenusPlus and Samsung joint venture awarded $200m to build energy solution
    The BESS-T bet: GenusPlus and Samsung joint venture awarded $200m to build energy solution
    • News

FOS Capital illuminates balance sheet with $3m KLIK lighting acquisition

  • In News
  • September 25, 2023
  • Alinda Gupta
FOS Capital illuminates balance sheet with $3m KLIK lighting acquisition

Commercial lighting solutions company FOS Capital (ASX: FOS) is set to expand its portfolio inking an agreement to purchase KLIK Systems, a Sydney-based linear lighting manufacturer. The acquisition will be financed using FOS’s available cash reserves and debt facilities. The transaction is on track to conclude within a span of two weeks.

The purchase price is $3 million, comprising $2 million cash on completion and $1 million a year from completion. Plus, a condition of the sale is relocating the KLIK factory. KLIK’s factory lease ends in January 2024; so, as per the acquisition, FOS is to relocate the business by December 2023.

Managing Director, Con Scrinis, said, “This transformative acquisition of KLIK is the next chapter in establishing FOS as the pre-eminent Australian lighting manufacturer.”

KLIK specialises in producing LED linear and handrail lighting solutions tailored for commercial, industrial, and architectural applications. With a workforce of 31 professionals, KLIK caters to the Australian commercial lighting sector, maintaining sales offices and distribution networks across all major capital cities. KLIK’s international footprint extends to export markets, contributing 25% of its revenue, with a notable presence in the United States.

This acquisition has multiple benefits for FOS, especially considering that KLIK brought in $8 million in sales in FY23. It is forecasted to add $1.5 million to FOS EBITDA, which was $936k in FY23. The Company’s revenue was $17.1 million, and with the KLIK acquisition, Group revenues are expected to reach over $25 million.

In FY23, FOS’s net profit stood at $580k, with its order book down 46% to $3.3 million. However, with KLIK, its post-acquisition order book will reach $10 million, and it will see benefits from KLIK’s NPAT, which was $755k in FY23.

Additionally, it will be able to undertake cost restructure and reduction as its manufacturing and production capacities will be spread across. KLIK will expand FOS’s market share in linear lighting and introduce it to new export markets. KLIK has a significant presence in the US market. It has 70 agents across the USA & Canada. The Company has identified an opportunity to export its LED luminaire manufacturer FOS Megabay range into these markets.

FOS has been actively considering acquisitions to bolster its balance sheet. For instance, in November 2022, FOS acquired Hawko Lighting Group for $1 million. Hawko helped the Company improve its manufacturing abilities. In FY24, one of the Company’s objectives is to actively pursue multiple value accretive acquisition opportunities and expand the distributor network.

The acquisition of KLIK not only enhances FOS’s presence in the linear lighting sector but also serves as a foundation for streamlining its manufacturing operations and introducing new product lines. Plus, KLIK brightens the path for FOS to establish a substantial export market beyond New Zealand, paving the way for increased international sales. For FOS, these acquisitions signal an illuminated FY24.

  • About
  • Latest Posts
Alinda Gupta
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
  • Fragrances to treat allergies? Microba and IFF enter stage two of novel treatments - December 4, 2023
  • BluGlass signs $2.6 million contract with North Carolina State Uni to develop lasers - December 4, 2023
  • Amid debt dispute, Electro Optic Systems reports revenue guidance of $210 to $230 million - December 1, 2023
  •  
  •  
  •  
  •  
  • asx fos
  • Con Scrinis
  • FOS
  • FOS Capital
  • KLIK
  • LED luminaire
  • lighting
  • News

Leave a Comment

You must be logged in to post a comment.

  • About
  • Latest Posts
Alinda Gupta
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
  • Fragrances to treat allergies? Microba and IFF enter stage two of novel treatments - December 4, 2023
  • BluGlass signs $2.6 million contract with North Carolina State Uni to develop lasers - December 4, 2023
  • Amid debt dispute, Electro Optic Systems reports revenue guidance of $210 to $230 million - December 1, 2023

Login or register for free to access unlimited reading

Register Now!
  • About
  • Latest Posts
Alinda Gupta
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
  • Fragrances to treat allergies? Microba and IFF enter stage two of novel treatments - December 4, 2023
  • BluGlass signs $2.6 million contract with North Carolina State Uni to develop lasers - December 4, 2023
  • Amid debt dispute, Electro Optic Systems reports revenue guidance of $210 to $230 million - December 1, 2023
  • News

  • Opinion

  • Satire

  • About

  • Contact Us

  • Subscribe

The content published on this website is solely for general information purposes and is not to be construed as financial advice. Should you seek financial advice you should consult with an appropriately qualified person. Opinions expressed on this site are subject to change without notice and The Sentiment who produced this content is under no obligation to keep the information current. The Sentiment, affiliated companies & associates may have a conflict of interest with companies discussed on the website due to commercial arrangements, for example they may be shareholders in the company, be engaged by them to assist in investor communications or receive commission/brokerage for funds raised.

Copyright © 2020 The Sentiment. All rights reserved.