LPA Group acquires Red Box International for £1.1m

4th Jan 2024 09:48

(Sharecast News) - Engineering specialist LPA Group has acquired aviation ground power equipment manufacturer Red Box International in a deal worth approximately £1.1m.

LPA said on Thursday that £275,000 of the acquisition cost will be satisfied upon completion, while a further £825,000 will become payable post-completion.

The AIM-listed group stated the acquisition was expected to be broadly neutral to full-year profits in 2024, and would become earnings-enhancing in the 2025 trading year.

LPA added the acquisition will provide "a strong addition" to its connection systems unit, based in Saffron Walden, which designs, manufactures, and supplies high-quality specialist products for the aviation, rail, and infrastructure markets. It also noted that the addition of Red Box to the group supports its long-term growth strategy whilst also lessening its dependence on rail projects.

Chairman Robert Horvath said: "The acquisition of Red Box is a demonstration of the opportunities available to the group to acquire businesses with high-quality products and, within a relatively short period, high growth potential. Being part of LPA will provide scalability to boost Red Box's success."

As of 0945 GMT, Angle shares had surged 43.4% to 19.0p.

Reporting by Iain Gilbert at Sharecast.com