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Muckle supports Tyneside-based D-Line with £12.4m sale

6th Mar 2024 | Corporate Finance
close up of Laptop against a yellow background with hand plugging in charger

We’re delighted to have supported Tyneside cable management business, D-Line, with its sale to Luceco plc for £12.4m.

D-Line has been acquired by Luceco plc, a supplier of wiring accessories, EV chargers, LED lighting, and portable power products. The deal has been agreed for an initial cash consideration of £8.6m and up to £12.4m of contingent consideration on a cash and debt-free basis.

D-Line, headquartered in Tyne & Wear in the UK, designs and supplies a range of innovative cable management solutions, including decorative cable trunking and accessories, fire-rated cable supports, floor cable protectors and cable organisers.  It employs approximately 60 people and supplies retail, wholesale and eCommerce customers mainly in the UK, Europe and North America.  The business supports its customers in North America from a sales and distribution facility in Kentucky, USA.  

The purchase price is subject to a closing cash, debt and working capital adjustment.  The Initial Consideration has been paid in cash, funded from Luceco’s existing debt facilities.  The Contingent Consideration consists of up to £0.8m subject to the collection of certain historical debtor balances and the non-crystallisation of a specific potential liability and up to £3.0m subject to achieving a transformational new business win.

For the unaudited 12-month period ending 30 November 2023, D-Line generated revenue of £17.0m and an underlying operating profit of £1.4m.  Gross assets at the end of the period were £8.1m.  The acquisition is expected to enhance earnings, achieving an operating margin consistent with that of the company in its first full year of ownership.

A natural fit

The business will continue to operate from its existing locations, and the senior management team will remain with the business post-acquisition.

John Hornby, Chief Executive Officer of Luceco commented: “D-Line’s product range is a natural fit alongside our existing categories. The business has developed a strong brand in the UK and internationally, and we are particularly excited about the opportunity to leverage D-Line’s operation in North America to support our growing business in the territory.”

Legal support

Legal support was provided by our corporate team, led by partner Adam Rayner and supported by associate Stephanie Brown and solicitor Josh Campbell.

Adam said:  "As a firm, we have advised D-Line for a number of years and so we are delighted to have supported the shareholders of this long-standing client on the sale to Luceco. We wish Luceco every success in the future.”

For more information on this deal, or if you'd like any corporate advice please get in touch with Adam Rayner on 0191 211 7962 or email [email protected]

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