LPA Group PLC on Wednesday said it has agreed to acquire the Powertron business of Eaton Electrical Products Ltd.

The Saffron Walden, Essex-based engineering firm focused on electronic and electro-mechanical components and systems said the deal will see it taking on the lease dilapidation obligations due in 2026 for Powertron, which are estimated to stand at around £200,000.

The takeover terms also involve LPA taking on the liability for any customer product warranty claims, which is capped at a total of £150,000, and a cash payment of around £17,000 to a seller.

LPA said the acquisition will be broadly neutral to financial 2025 profit, and that it will ‘make a small and group contribution to group profits over time with the expected increase in sales volumes’.

The Powertron division generated revenue of £2.1 million during 2023 and a pretax loss of £77,000. Its net assets are currently estimated at around £565,000.

Chair Robert Horvath said: ‘The addition of more stable month-on-month product is a key part of our ongoing strategy to keep our manufacturing units productive and this acquisition, importantly, will support our delivery against our strategy. This acquisition, and the acquisition of the Red Box business announced last year, while both small, are going to make a significant difference to monthly sales volumes that we can build upon, supported by our international distribution network. We are also seeing good progress in increasing the sales in the connector side of our aviation business as well as our Channel distribution business.’

LPA expects the acquisition to complete in the first quarter of 2025.

Shares in LPA Group were up 4.7% at 62.30 pence each in London on Wednesday afternoon.

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