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(Sharecast News) - Engineering specialist LPA Group said on Wednesday that it has acquired the UK trade and assets of power supply provider Eaton Electrical Products.
LPA Group said the acquisition included Eaton's UK trading division and assets, including its small manufacturing capability in Cambridgeshire and was complementary to a number of power supply products it currently manufactures for the rail industry.
The AIM-listed firm said the acquisition would result in it acquiring fixed assets, current assets and liabilities, the employment of approximately 20 members of staff, and the business including worldwide rights to brands and product designs. The consideration for the acquisition was in the form of LPA, taking on the obligation to settle lease dilapidation obligations expected to be due in 2026 estimated at 200,000, taking on liability for any customer product warranty claims capped at in total 150,000, and a cash payment to the seller currently estimated at roughly 17,000.
LPA anticipates that the acquisition will be broadly neutral to FY25 profits and that it will make "a small and growing contribution" to group profits over time with the expected increase in sales volumes. Completion was expected to occur in Q1.
As of 1150 GMT, LPA shares were up 4.71% at 62.30p.
Reporting by Iain Gilbert at Sharecast.com
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