Gerard Lighting Recommends $1.05 Cash Proposal

Gerard LightingThe board of Gerard Lighting, purchased by Quest HNW clients in October 2010, have unanimously recommended the proposal of Champ Private Equity to acquire all shares in Gerard at $1.05 per share. The Gerard family control 52% of the stock.

Gerard distributes and sells lighting and electrical products in Australia and New Zealand under  a range of brands including Pierlite and Crompton. The business was founded by Alfred Gerard in 1920 who developed a range of “clips all” adjustable conduit fittings than led to the creation of the Clipsal brand. Clipsal was sold 83 years later to Schneider Electric. The family has endured the test of time ever since with descendants of Alfred steering the business all the way to the latest millennium. The old adage that the first generation starts a business, the second builds it and the third loses it does not apply here.

The business listed on the ASX after acquiring Lighting Corporation in 2008. The change of control appears to be driven by the inevitable diversification of family interest that occur over time.

Our clients average entry price was 87 cents plus  around 10 cents in franked dividends since acquisition. The deal is expected to conclude in October or November this year.