FOS - ATS Acquisition Presentation
| Stock | FOS Capital Ltd (FOS.ASX) |
|---|---|
| Release Time | 11 Jun 2025, 10 a.m. |
| Price Sensitive | Yes |
FOS to acquire Aldridge Traffic Systems for $3.1M
- FOS Lighting Pty Ltd to acquire street lighting business assets of Aldridge Traffic Systems
- Acquisition funded by $3.7M equity raising via placement at $0.30 per share
- Acquisition expected to strengthen FOS's presence in road lighting industry
FOS Capital Ltd, through its subsidiary FOS Lighting Pty Ltd, has announced the acquisition of the street lighting business assets of Aldridge Traffic Systems Pty Ltd (ATS) from ASX-listed Traffic Technologies group (in Administration) for a total consideration of $3.1 million. The acquisition includes plant and equipment of $0.9 million, inventory of $0.5 million, and intellectual property of $1.7 million. FOS is also acquiring TTI's Deneefe, Sunny Signs, L&M and QTC assets, which are deemed non-core to FOS's operations and will be divested or shut down following transaction completion. FOS expects circa $0.5 million to $1.0 million of related proceeds, which will be used as additional working capital to fund the restoration and expansion of ATS.The acquisition of ATS will be funded by a $3.7 million equity raising via a placement to new and existing investors at $0.30 per share, representing a 3.2% discount to the last close. Approximately 12.3 million new shares will be issued, resulting in approximately 67.1 million total shares on issue.The acquisition of ATS is in line with FOS Capital's ongoing acquisition strategy, which includes six previous acquisitions since its establishment in 2019. The addition of ATS allows the company to advance key strategic priorities: expanding scale; accessing new markets; generating operating leverage; and supporting ongoing government infrastructure spending. The acquisition also strengthens FOS Capital's existing presence in the road lighting industry through its Eclatec product range.
FOS management have significant experience both in the road lighting industry and with the TTI business, and combined with experience supporting similar turnarounds, management are confident in restoring ATS to its former position within two years of acquisition.