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- FOS Capital’s (FOS) subsidiary, FOS Lighting, is set to take over New Zealand-based lighting company, Ecopoint
- Ecopoint was established in 2009 and specialises in LED lighting with representation in both the North and South Islands
- Through a binding agreement, FOS Lighting will acquire all the shares in the commercial company for $1.8 million
- The company says the acquisition will create a base for its NZ operations, enabling growth through the introduction of its product ranges to the market
- Shares have been trading 4.1 per cent higher at 25 cents each
FOS Capital’s (FOS) subsidiary, FOS Lighting, is set to take over New Zealand-based lighting company, Ecopoint.
Through a binding agreement, FOS Lighting will acquire all the shares in the commercial company for $1.8 million.
Payment will comprise NZ$1.49 million (A$1.43 million) in cash and NZ$380,000 (A$$366,386) worth of FOS shares, with the transaction expected to be completed in two weeks.
Ecopoint was established in 2009 and specialises in LED lighting with representation in the North and South Islands.
The company said the strategic acquisition would allow FOS to create a base for its New Zealand operations, enabling growth through the introduction of its product ranges to the NZ market.
FOS believes the deal will also benefit Ecopoint with access to the FOS Brisbane based manufacturing facility, providing custom products with shorter lead times.
Additionally, FOS plans to market the Ecopoint range in Australia through its distribution network.
The acquisition is FOS’s first since listing on the ASX in June and the company said it would be EPS accretive and underpins its FY22 profitability.
Shares were trading 4.1 per cent higher at 25 cents at 12:13pm AEST.
