M&A Case Study: Raytec Ltd.
In 2022, Raytec Ltd. celebrated its 10th year as part of the Optex Group. We talked to David Lambert, the Managing Director and one of the founders of Raytec Ltd. who continues to manage the company today.
Why did you choose Optex as a business partner?
In considering M&A, we were strongly conscious of working with a partner who could create a strong synergistic effect and provide potential for building a solid foundation for future growth. Optex met many of our conditions.
Optex has sales offices around the globe and could help expand our market. They offered to protect our manufacturing facilities and employees in England. They have a policy to let the pre-M&A management team continue to run the business. Optex introduced a more formal approach to longer term thinking and strategic planning into our business which complemented what we already had in the management team. For these reasons, we decided that Optex was a great fit as a new business partner.
What benefits did you reap by joining the Optex Group?
Originally, we believed that the greatest synergy would be to use Optex’ sales channel to expand our sales area, and, in fact, we have been able to expand and strengthen the sales channel for our products in Latin America, France, and Japan. In particular our sales in Japan have been something to behold, and we could not have done this without Optex.
Our management team builds and implements its own strategy. For example, in 2013, one year after Optex acquired Raytec, we saw an opportunity in the hazardous area lighting business. This was a new market for us, and it meant a fundamental change to our business strategy for new business. Even though this was a completely new market for Optex as well, they fully supported our business plans. The hazardous area lighting business now accounts for a large share of our sales.
In terms of our world-leading hazardous area LED lighting fixtures, we believe this sector has great potential for global expansion. We believe the future holds great opportunities for growth as a member of the Optex group.
We are very proud to have been a part of the Optex family for 10 years. In this time, Raytec has steadily grown its business and contributed to the Group, but the main business members at both Raytec and Optex have not changed significantly over the past 10 years. This is an example of how the relationship between our two companies continues to work extremely well.
About Raytec Ltd.
Location
Northumberland, UK (northeast England)
Description of business
Manufacture, development, and sale of special application LED lighting. Raytec Ltd. boasts the world’s top share of auxiliary lighting specialized for surveillance camera systems. Its hazardous areas LED lighting, which can even be used in potentially explosive areas, is employed at various sites around the world.
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