Lakeland Industries Acquires Fire & Rescue Business Of LHD Group For $16.7M
Portfolio Pulse from Shivani Kumaresan
Lakeland Industries Inc (NASDAQ:LAKE) has agreed to acquire the fire and rescue business of LHD Group Deutschland GmbH and its subsidiaries in an all-cash deal worth $16.7 million. LHD, with annual revenues of about $27 million, specializes in firefighter gear and services. The acquisition, expected to close in May, aims to expand Lakeland's market share in the fire service sector and is anticipated to be immediately accretive to Lakeland's earnings. Lakeland held $26.4 million in cash as of October 31, 2023, and will announce its fiscal 2024 Q4 results on April 10, 2024. LAKE shares closed slightly lower at $17.79.
April 03, 2024 | 10:22 am
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Lakeland Industries acquires LHD Group's fire and rescue business for $16.7M to expand its market share in the fire service sector, expected to be accretive to earnings immediately post-acquisition.
The acquisition of LHD Group's fire and rescue business is a strategic move for Lakeland Industries, aiming to expand its market share in the fire service sector. Given the all-cash nature of the deal and Lakeland's current cash reserves, the transaction is financially feasible. The expectation that the acquisition will be immediately accretive to earnings suggests a positive short-term impact on LAKE's stock price. However, the actual impact will depend on the integration success and the realization of anticipated synergies.
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