GUD Holdings acquires Vision X Group

GUD Holdings has announced the acquisition of LED lighting system manufacturer Vision X Group.

Vision X Lighting is used on this Bucyrus-Erie 1570 dragline at Cloud Peak Energy’s Spring Creek Mine in Decker, Montana

The deal is expected to be worth US$52.8 million (A$71.07 million) but could rise to as much as US$71.4 million (A$96.1 million) through subsequent earn out payments reaching US$18.6 million (A$25.04 million). The acquisition is anticipated to be completed on November 30 this year,

The deal will see GUD expand its portfolio of niche automotive lighting through Vision X, which will sit within the Brown and Watson International (BWI) business pillar of the company.

Currently, some Vision X products are available in Australia via different brands under existing commercial arrangements, however, GUD says it will explore its distribution options following the transaction.

GUD Holdings chief executive Graeme Whickman says the deal will position the company for future growth in the market.

“Vision X are market leaders in the design, engineering and manufacturing of LED automotive lighting.

“With over 1,200 products and more than 500 trademarks, design and utility patents, we are buying a well-established, well- run business that performs strongly in the automotive, motorcycle, mining, marine, general industrial, and fire and emergency vehicles.

“We are delighted that the established leadership team will remain with the business and, because of its significant alignment to BWI, the integrated Vision X business will be led by BWI CEO George Davies.

“Vision X is well positioned for future growth both organically and via the introduction of BWI’s existing product range and marketing expertise.”

Vision X was founded in 1997 and boasts product development and production facilities in Korea and China in addition to warehouse product development, and marketing facilities in the United States.

Davis says the BWI is looking forward to the completion of the deal.

“Vision X has enduring partnerships across multiple geographies.

“In addition to the current strong performance, we look forward to leveraging the synergies that this acquisition presents for both the existing BWI businesses, and for Vision X. Likewise, we look forward to the Vision X team becoming a part of our team.”

Across the 2020 calendar year, Vision X delivered earnings before interest, tax and amortisation of US$8.8 million (A$11.84 million) and is expected to experience growth in 2021.

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