Eyeware company Inspecs (SPEC:AIM), a current Shares Tip of the Year for 2021, added further to its global reach with the acquisition of Swedish design and licensing firm Ego for an initial outlay of just over £6 million.
From its headquarters in Stockholm, Ego - which was founded in the early 1960s - designs eyeware for prestige brands such as Liberty, Barbour, Joseph, Viktor & Rolf and Kenzo.
Production is outsourced to third party manufacturers, and the finished items are marketed through major optical chains and through its offices in Hong Kong and Osaka.
The firm is expected to generate sales of around £9 million this year compared with £3.4 million last year, and the acquisition will contribute to Inspecs' earnings immediately in 2022.
The Ego deal follows the acquisition earlier this month of BoDe, a long-time Inspecs partner and distributor of eyeware in Germany, Austria, Holland and Switzerland, for an initial outlay of €1.76 million, as part of the firm’s strategy to increase control over its supply and distribution chains.
BoDe distributes Inspecs products as well as its own licensed brands, and again the acquisition is expected to contribute to earnings straight away.
Shares were unchanged at 375p on the news, although volumes were low on the last full trading day before Christmas. Since we tipped the shares at the end of 2020 they have gained more than 100p or 38%.
