- FOS Capital’s (FOS) subsidiary FOS Lighting is acquiring Hawko Lighting Group for $1.3 million
- Hawko Lighting is based in Queensland and makes a variety of linear lighting which FOS Capital says will expand its market share and manufacturing capacity
- The acquisition will be funded via a $1.5 million placement which will include the issue of 7.5 million shares at 20 cents each to institutional and sophisticated investors
- FOS shares end the day 4.76 per cent in the red at 20 cents
FOS Capital’s (FOS) subsidiary FOS Lighting has entered a binding agreement to acquire Hawko Lighting Group for $1.3 million.
Hawko Lighting was established over 30 years ago in Queensland. It manufacturers a variety of commercial, industrial, architectural and LED linear lighting and has distributors in all capital cities.
FOS Capital said the acquisition expands its market share in linear lighting and gives it extra manufacturing capacity for its growing product line. The company also plans to utilise its “significant” sales and distribution network in Australia and New Zealand to expand Hawko’s reach in Australia.
FOS’ Managing Director and CEO Con Scrinis said since only listing on the ASX in June 2021, FOS Capital has made “significant progress” in its first year.
“The acquisition of Hawko and associated capital raising continues FOS’s stated commitment to grow organically and by acquisition and bolsters an already strong debt-free balance sheet,” he said.
The company will pay $1 million in cash on the completion of the purchase and a further $300,000 in cash in 12 months.
To fund the purchase, FOS Capital launched a $1.5 million placement which will include the issue of 7.5 million shares at 20 cents each to institutional and sophisticated investors.
The company expects the placement will be completed on November 1.
FOS shares ended the day 4.76 per cent in the red at 20 cents.