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Elektron completed its acquisition of Arcolectric’s switch business on 23 December 2003 and announced it the next day. The deal brought Elektron’s Bulgin Components subsidiary a substantial appliance-switch manufacturer, production assets and an established export network. Elektron described the strategic fit as a combination of market, manufacturing and distribution synergies; later reporting points to shared sales channels and operational improvements, but does not quantify a specific synergy figure.
What Elektron acquired and what it paid
Elektron PLC acquired the trade and certain assets of Arcolectric Holdings and Arcolectric Switches from the receiver. The acquired assets included plant, machinery, fixtures, fittings, tooling and stocks sufficient to continue the switch business. The transaction completed on 23 December 2003; Elektron announced it on 24 December. Elektron’s announcement and its later annual-report material record different lease-finance debt figures.
| Item | Reported detail |
|---|---|
| Cash consideration | £352,000, according to Elektron’s 24 December 2003 announcement and later annual-report material (announcement; annual-report material). |
| Lease-finance debt | £1.515 million in the 24 December 2003 regulatory announcement; £1.441 million in the later annual-report presentation (announcement; annual-report material). |
| Operating base | An 80,000-square-foot facility in West Molesey, Surrey, with 170 staff at the time of the announcement (Elektron announcement). |
The debt figures should not be treated as interchangeable: Elektron’s subsequent accounting presentation recorded a lower amount than the announcement.
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Elektron said its board viewed the purchase as “a unique opportunity to acquire a substantial business at a low price from a receiver with extensive market, manufacturing and distribution synergies between Arcolectric and Elektron’s existing subsidiary, Bulgin Components.” The rationale rested on capabilities that could complement Bulgin rather than on Arcolectric’s recent earnings.
#1 Best Overall
- Features: "O I" marked on black button 12V Rocker Switch with 5 sets of wires(#187 Lock Terminals on end) for switch easy connection.
- Material: The KCD1 Small round rocker switch is made of nylon PA66. The terminals are made of brass with silver plated.
- Function: The ON/OFF rocker switch is 2 pin SPST design (single pole single throw) ON OFF. The rating is 10A 120V AC and 20A 12V DC.
- Installation: The mounting hole size of this Mini 12 Volt rocker switch is 0.787 inches (20mm). It adopts snap-in design, easy to install.
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Complementary products and manufacturing
Both companies operated in electronic components. Arcolectric added appliance switches, indicator lights and fuseholders for domestic appliances and industrial applications. Its production equipment, tooling, stock and operating site gave Elektron an established manufacturing base for those lines. Elektron’s announcement and transaction reporting describe the products and operations.
Markets and distribution
The acquired group exported 75% of its products to more than 60 countries, including the United States, China and Turkey. Its international structure included a US distribution subsidiary and a Tunisian manufacturing subsidiary. The transaction reporting also described an option relating to a Hong Kong company that owned a Chinese manufacturing facility; that option is distinct from the assets explicitly acquired in the switch-business purchase. Transaction reporting and annual-report material describe the international footprint.
Rank #2
- Single pole wall light switch, rating 15A 120-277V, decor wallplate included, gloss finish, UL certified. Reminder: To match BESTTEN light switch color, please select USWP4 series wall plates
- A positive, yet smooth and quiet On/Off paddle action allows you to feel the quality in which every BESTTEN switch is made
- Quick push-in and side wiring options available. Terminal screws accept up to 12 AWG and quick push-in wiring accepts 14 AWG solid copper wire only
- Full-rated current capacity with LED, tungsten, fluorescent or resistive loads. Motor capacity is 80% of switch rating
- The modern look of a decor switch can enhance the style of anywhere a switch is needed
Arcolectric’s financial position before the purchase
Arcolectric had substantial sales and operating capability, but its reported profitability had deteriorated. The figures below are from the accounts and management information cited in the transaction reporting; they cover different periods and accounting bases, so they should not be read as directly comparable audited annual results.
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| Period and basis | Turnover or sales | Operating result |
|---|---|---|
| Year ended 31 December 2001, audited | £13.9 million | £19,000 profit |
| 2002, unaudited accounts | £14.2 million sales | £242,000 loss |
| Ten months to 31 October 2003, management accounts | £12.3 million sales | £1.4 million loss |
This background helps explain the receiver-led purchase: Elektron acquired operating assets, products, customers and distribution reach at a time when the business was loss-making, rather than paying for a recent record of strong profits. It does not establish the causes of those losses.
Rank #3
- PROTECT – Helps create a cleaner home environment by helping to keep switch and wallplate surfaces cleaner
- PREVENT – Highly effective in protecting the surface of the device from the growth of mold, mildew, fungi and odor-causing bacteria in between normal cleanings
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- COMPATIBLE – Use both antimicrobial treated switch and wallplate for complete coverage
What integration and later performance show
Later reporting says Elektron combined the previously autonomous Arcolectric and Bulgin businesses into one legal entity and shared selling channels. The same reporting says Arcolectric returned reasonable operating profits, worked with a significantly lower overhead base and achieved higher daily output than under its previous ownership. Later reporting describes these outcomes and integration actions.
Those details offer evidence of how Elektron pursued the proposed fit: commercial channels were shared and the businesses were consolidated, while operating performance improved. The available reporting does not give a separately quantified cost saving or revenue uplift attributable to the acquisition, so the synergies can be described qualitatively, not assigned a precise financial value.
Quick Recap
Best Value
- Full rated current capacity with tungsten, fluorescent or resistive loads. Motor capacity is 80-percent of switch rating
- Back and side-wiring terminals accept both solid and stranded wire to ease installation
- Heavy-duty impact-resistant thermoplastic construction for long service life in commercial applications
- Two ground connection options: a green grounding screw and a self-grounding clip
- All Decora devices meet or exceed applicable UL, CSA and NOM testing standards
Rank #4
- Material: The KCD1-101 rocker switch housing is made of nylon PA66. The terminals is made of brass, silver plated.
- Function: Mini rocker switch is 2 pin SPST design (single pole single throw), easy to turn ON OFF. The rating is 10A 120VAC, 6A 250VAC, and 20A 12VDC.
- Features: "O I" marked on the black button. Package contains 10pcs of KCD1 Rocker Switches and 10 sets of wires for easy connection.
- Installation: The Panel mounting hole size of this miniature rocker toggle switch is 0.756 inches (19.2mm) x 0.5 inches (12.7mm). Snap In Version, easy to install.
- Application: This Small T85 rocker switch is widely applied to all kinds of household appliances, Vehicles Car Automotive, etc.
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