ELECTRICAL: ARB Plugs Into Eurolux
Recent Western Cape Business News
JSE listed electrical products wholesaler ARB Holdings has snapped up a 60% stake in Milnerton - based light fittings company Eurolux for R81 million.
Eurolux are specialist importers and distributors of incandescent, energy saving, LED and fluorescent lamps; a broad range of light fittings, desk and floor lamps and outdoor and security lights as well as ancillary electrical products including fans and electrical lighting components.
The deal values Eurolux at R135 million. The vendors selling the business include Peter Willig and Steve Palframan (the former provincial wicket keeper) – businessmen, some readers may remember, were involved in the rescue attempt at controversial industrial company Whetstone in the late nineties.
Willig, Palframan and Shaun Bouchier will be retained as the executive management team after the ARB deal goes through after signing new service and restraint contracts.
The vendors, who acquired control of Eurolux in 2002, will continue to hold the remaining 40% equity in the business.
Currently Eurolux does not sell directly to the public but rather sells and distributes products to specialised lighting shops, independent electrical wholesalers and major retail chain stores in southern Africa.
ARB CEO Byron Nichles says that as a trading and distribution business, Eurolux is strategically aligned with ARB’s core competencies.
“This provides ARB with a unique opportunity to leverage its existing share of the lighting sector.”
More specifically Nichles says the acquisition creates an opportunity to leverage ARB’s distribution network to accelerate growth within certain of Eurolux’s product categories and market segments (including the commercial and industrial lighting markets).
Willig, who serves as the MD of Eurolux, is confident the ARB deal will unlock significant growth and expansion opportunities for both companies.
“We have identified the commercial and industrial lighting markets as an area of growth potential and have recently sourced the first range of products to sell into these markets.”
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