- efectoLED continues its international expansion with the acquisition of Lyco Group and the upcoming opening of a logistic center in northern France.
- Since its creation in 2014, the company has grown 20% annually and expects to exceed €100 million turnover by 2023.
- Lyco Group is one of the leading online distributors of lighting products in the UK with more than 7 million visits per year and GBP18 million in sales.
efectoLED, the leading online lighting LED player in Southern Europe and a portfolio company of Miura Partners, has acquired Lyco Group, one of the UK’s leading online distributors of lighting products.
With this transaction, efectoLED positions itself as a leader in the UK online lighting sector and consolidates its position in Europe, where it is already the market share leader in Spain, Portugal, Italy and France. Later this year, efectoLED is to operate a new warehouse in northern France, which together with the acquisition of Lyco, will boost its European expansion plan resulting in over €100 million turnover.
Since 2016 efectoLED has grown at double-digit annual sales of 20%, due to a solid online commerce model with a base of more than 16,000 recurring professional customers, the exponential growth of the decorative segment launched in 2020, its expertise in sports facilities lighting projects and the opening of new online stores in five European countries. The company currently serves in 12 markets under Ledkia brand outside Iberia.
In addition, since Miura Partners’ investment, efectoLED has invested around €5 million to reinforce its structure −doubling its team to 240 employees, opening new offices and increasing its warehouse capacity to 17,000 m2.
Milton Keynes-based Lyco Group specializes in the distribution of decorative and technical lighting through its well-known and established online and offline channels: Lighting Direct, Lyco, Castlegatelights and Online Lighting. The company offers a wide range of branded products with more than 15,000 SKUs both indoor and outdoor products. Furthermore, Lyco has experience in the development of specialized lighting projects in the hospitality, healthcare and education sectors, among others. The management team remains involved in the project to lead the consolidation of the group in the UK.
According to Jordi Alegre, Managing Partner at Miura Partners, “efectoLED is taking firm steps to become the European leader in on-line lighting and has already a solid base to tackle its future international expansion plan. The acquisition of Lyco, the upcoming logistics center in northern France and the structural foundations in team, systems and logistics capacity, will allow the company to continue growing at double digit with high profitability levels as it has been doing in recent years.”
For Paco Mas, CEO at efectoLED, “Lyco Group has a team of professionals with a long history in the UK online market, a notorious branding of its web platforms and a product catalog of both well-known brands and own brands. Our successful model of professional customer acquisition and recurrence will allow us to become the clear leader in online distribution of lighting solutions in the UK, both in the decorative and technical segment. Thanks to Lyco’s management support we will achieve a rapid integration and implementation of these synergies.”
Charles Barnett, Managing Director and founder at Lyco, explained that “We are delighted to be teaming up with efectoLED and Miura Partners. The company is a clear reference in technical lighting and a leader in key regions in Europe with a track-record of year-on-year growth and a high customer retention rate. We see efectoLED a perfect complement to Lyco’s strength in decorative lighting, and together with its e-commerce, supply chain and distribution capabilities across Europe will further enhance our proposition both in the UK and Europe.”
The transaction has been advised by Socios Financieros (M&A), KPMG (DD), Stevens & Bolton and PwC (Legal). Lyco’s acquisition has the financial support of LGT Capital Partners.
efectoLED is a leading player in online LED lighting, a more efficient and sustainable technology than conventional lighting. Founded in 2014 and headquartered in Valencia, efectoLED specializes in technical lighting products, exterior & interior decoration, and offers an extensive catalog with more than 10,000 references. It is currently present in 12 countries in Europe operating under Ledkia brand beyond the Iberian scope. Efectoled employs more than 240 professionals.
About Lyco Group
Lyco Group is a leading UK company specializing in the online distribution of high quality, cutting-edge lighting. Founded in 1995 in Milton Keynes, the company operates under the brands Lyco, Lighting Direct, Castlegate lights, and Online Lighting and has a portfolio of over 15,000 SKUs of reputable indoor and outdoor lighting products, with a strong weight in the decorative lighting. Lyco employs over 60 people.
About Miura Partners
Miura Partners is a leading middle-market private equity firm in Spain based in Barcelona with more than €1bn of Assets under Management.
The firm is specialized in investing in mid-size family-owned & entrepreneurial businesses, providing attractive growth and innovation plans, and with a clear focus on sustainability. Since 2008 Miura Partners has invested in more than 50 companies, with transactions in excess of €2bn value.