FW Thorpe offloads Mackwell arm

FW Thorpe, based in Redditch, has sold its Mackwell Electronics subsidiary. Brierley Hill’s NACB Holdings bought the company for £6.5m.

Stock Exchange-listed FW Thorpe designs and manufactures lighting equipment.

NACB Holdings’ sole shareholder Nicholas Brangwin will pay £4.5m in cash on completion of the deal and a further £2m by the issue of convertible secured loan notes.

FW Thorpe is to provide Brangwin with a loan of £300,000 which will bear interest at a rate of 4 per cent over base rate for the deal to happen.

The proceeds of the disposal will be aggregated with the company’s existing cash balances and used for general corporate purposes.

In the year to June 2011 Mackwell generated profit before tax of £1.3m.

FW Thorpe told the Stock Exchange: “The original rationale behind the acquisition of Mackwell was to secure an important element of the supply chain as part of the process of developing the company’s offering in the emergency lighting market.

“Mackwell needs to and will continue to tailor its range more towards emergency LED control gear, luminaires and systems and needs to be free to do so. Over the past few years the company has concentrated on acquiring niche businesses within the lighting industry supplying lighting products to end users within a variety of sectors.”