VIGNAL GROUP takes majority stake in ABL LIGHTS
Context
The acquisition of ABL Lights by Vignal Systems is a strategic move to consolidate the European market for work lights and signalling lights for industrial vehicles. By combining their complementary product lines and customer portfolios, the two companies aim to step up their development in Europe, the United States, and Asia. The acquisition will also enable Vignal Systems to extend its geographical coverage into the strategic US market, leveraging ABL Lights' operations in the United States. The deal is expected to boost the group's growth, both in France and abroad, and open up significant cross-selling opportunities with leading manufacturers of utility, industrial, and commercial vehicles. The combination of the two companies will also facilitate the technological switch to LED lighting, which is expected to drive growth over the next five years. With the support of Eurazeo PME, Vignal Systems' majority shareholder, the company has reinjected significant funds into the deal, demonstrating its commitment to driving growth and expansion in the sector.
ABL LIGHTS, which reported an EBITDA margin of in 2013, is valued in this transaction at an EV/EBITDA multiple of , a level to compare with the average currently observed in the Industry & Manufacturing sector (11.5x).
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Target
ABL Lights is a leading manufacturer of work lights and driving lights for industrial vehicles, with a rich history dating back to 1875. The company was formed through the merger of three entities - a French, an American, and a Swedish company. ABL Lights boasts a diverse customer base, including major heavy-duty utility vehicle makers and railway manufacturers. With 109 employees and operations in Caen, France, Mosinee, USA, and China, the company has established a strong presence in the global market. The company's revenue is diversified across France, Europe, the United States, and Asia, with a significant portion of its sales generated outside of its home market. As a specialist in lighting solutions, ABL Lights has initiated its technological switch to LED lighting, which is expected to drive growth over the next five years.
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REFERENCES
Valuation range: EV 10M - 30M EUR
Revenue range: 10M - 30M EUR
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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Press release: view release
Acquirer: vignal group