FOS Capital Acquires KLIK Systems

FOS Capital Ltd (ASX: FOS), a subsidiary of FOS Lighting Pty Ltd, has recently entered into a binding agreement to acquire KLIK Systems, a Sydney-based linear lighting manufacturer. The acquisition will be financed using a combination of existing cash and debt facilities and is expected to conclude within two weeks. KLIK Systems, with FY23 sales of AU$8 million, is set to contribute AU$1.5 million to FOS's EBITDA, raising EPS from 1.09c to 2.49c (unaudited pro forma 2023, assuming a relocation and business restructuring under FOS).

The purchase price is AU$3 million, with AU$2 million paid on completion and AU$1 million due 12 months after. This acquisition allows FOS to enhance its market presence in linear lighting, tap into significant export markets, and achieve cost reductions through operational consolidation. KLIK Systems, established over 40 years ago, specializes in commercial, industrial, and architectural LED linear and handrail lighting and derives 25% of its income from export markets. The acquisition marks a strategic move for FOS as it seeks to establish itself as a leading Australian lighting manufacturer.

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