Lightbulb enters conditional agreement to acquire Bluwstuff

Litebulb, the AIM-listed support services provider, has entered into a conditional share purchase agreement to acquire Bluwstuff, a designer of products primarily targeted at the gift and toy markets.

Litebulb, the AIM-listed support services provider, has entered into a conditional share purchase agreement to acquire Bluwstuff, a designer of products primarily targeted at the gift and toy markets.

The initial consideration for the acquisition is 250m ordinary shares, with a further 125m ordinary shares dependent on various performance criteria.

In the year ending December 31st 2011, Bluwstuff recorded turnover of £4.6m and a loss before tax of £1.6m. Unaudited financial results for Bluwstuff for the 11 months to November 2012 reported revenues of £4.1m, and earnings before interest, tax, depreciation and amortisation (EBITDA) - a frequently used measure of operating profit - recorded a loss of £2,000.

Litebulb stated that Bluwstuff is expected to record a positive EBITDA for the year ending December 31st 2012.

According to Litebulb, the acquisition of Bluwstuff would significantly enhance sales over the next 12 months and would be earnings enhancing before interest, tax, depreciation and amortisation.

The acquisition is further expected to provide a number of benefits to the enlarged group, including creating a group with higher turnover and rapidly enhancing Litebulb Group's position as a provider of niche consumer brands and products.

Simon McGivern, LiteBulb Group Chief Executive Officer, commented: "The acquisition of Bluwstuff is a further step in our strategy of expansion both organically and by targeted acquisitions.

"Given the similarities of the two businesses, the addition of Bluwstuff is a natural fit and it further positions LiteBulb Group as a leading developer of innovative branded products that are then distributed through an expanding network of blue-chip retailers and international distributors."

"The strong support from respected institutional investors for the fundraising is a further endorsement of our strategic plan and growth ambitions," he added.

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021
The MoneyWeek Podcast: bitcoin special
Bitcoin

The MoneyWeek Podcast: bitcoin special

Merryn talks to bitcoin experts Dominic Frisby and Charlie Morris to get the lowdown on the cryptocurrency to find out why it's such a huge global phe…
15 Jan 2021
Leasehold reforms promise the end of a nightmare for many homeowners
Property

Leasehold reforms promise the end of a nightmare for many homeowners

Horror stories about unscrupulous landlords profiting from a legal relic of the feudal era are about to get a happy ending, says Simon Wilson.
16 Jan 2021