From the Vitec Group:
The Vitec Group plc ("Vitec" or the "Group"), the international provider of products and solutions to the Broadcast and Photographic markets, announces that on 22 September 2017 it acquired certain assets and liabilities, primarily comprising the JOBY and Lowepro brands, from the DayMen Group S.a.r.l. ("DayMen"), for a cash consideration of $10.3 million (£7.6 million), on a debt/cash free basis, with an expected total investment of $32.0 million (£23.7 million), including deal costs.
Vitec also announces that on 20 September 2017 it acquired RT Motion Systems Ltd ("RTMotion") for up to £3.4 million in cash, including deal costs. RTMotion provides wireless motor lens control systems for broadcast, cine and video cameras.
Stephen Bird, Group Chief Executive of Vitec, commented:
Vitec is the natural home for JOBY and Lowepro and we know the business well. This is an opportune time to buy these high profile, high quality brands: JOBY has been growing rapidly, reflecting its success in developing innovative new products for the camera accessories market, while Lowepro represents an opportunity to improve margins through cost reductions and integration with Manfrotto, along with the potential for additional benefits as its markets improve.Acquisition of JOBY and LoweproRTMotion is a high technology business which complements our existing activities and gives the Group additional high quality camera accessories for the expanding independent content creator market.
Both of these acquisitions are an excellent strategic and technological fit, have great prospects, and the two acquisitions together are expected to materially enhance earnings per share in 2018 and beyond.
This is an exciting time for Vitec as we continue to expand our range of innovative, new products for the fast growing image capture and sharing market, and I am delighted to welcome both teams to Vitec.
This acquisition is an excellent strategic fit with Vitec's existing core activities. It gives the Group greater access to the fast growing iPhoneography and vlogging consumer accessories market, and expands its presence in the US market by adding high quality, complementary, leading brands to enhance its Photographic Division.
JOBY and Lowepro products are designed and developed in Hong Kong and California respectively. In 2006, JOBY introduced the patented GorillaPod which has transformed the camera accessories market and, like Manfrotto, JOBY has a strong presence in Apple stores. Lowepro has been a market leader in bags designed to protect electronic and photographic devices since its inception in 1967.
In addition to leading brands, the acquisition brings product marketing resources located in California and expert engineering teams based in the Far East. Dedicated supply chain teams are located in Hong Kong and China where all products are manufactured by third parties and sold globally via independent distributors.
Vitec plans to integrate JOBY and Lowepro into its Photographic Division's existing organisational structure, under the leadership of Marco Pezzana, Photographic Divisional Chief Executive.
Strategic rationale for the acquisition:
This acquisition gives the Group:
Financial aspects of the acquisition:
Acquisition of RTMotion
The acquisition of RTMotion is in line with Vitec's strategy of offering innovative and highly technical solutions to the Group's established independent content creator ("ICC") customer base, and will facilitate Vitec's growth in the higher technology area of camera accessories.
RTMotion is an excellent strategic fit with Vitec's Broadcast Division's Creative Solutions Business Unit, complementing Teradek, Wooden Camera, SmallHD, Paralinx and Offhollywood, which also design and produce high quality products mainly for ICCs.
Based in the UK, RTMotion designs and assembles wireless motor lens control systems for video cameras, selling them primarily through direct distribution and a growing reseller network, mainly targeting the ICC market.
RTMotion will become part of Vitec's Creative Solutions Business Unit. There are significant growth opportunities to sell RTMotion's products through Vitec's global sales and distributor network, and the business will benefit from Vitec's marketing, manufacturing and supply chain capabilities.
Under the terms of the acquisition, the initial cash consideration is £2.6 million on a debt/cash free basis, including deal costs and £0.5 million held in escrow. Up to a further £0.8 million cash consideration will be payable dependent on the seller meeting integration and retention targets.
B&H carries JOBY and Lowepro products.