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Lakeland Industries (LAKE) Acquires Fire and Rescue Business of the LHD Group for $16.7M Cash

April 2, 2024 5:19 PM EDT

Lakeland Industries, Inc. (NASDAQ: LAKE) (the "Company" or "Lakeland"), a leading global manufacturer of protective clothing for industry, healthcare and first responders on the federal, state and local levels, announced today that it has entered into a definitive agreement to acquire the fire and rescue business of LHD Group Deutschland GmbH (LHD) and its Hong Kong and Australian subsidiaries in an all-cash transaction valued at approximately $16.7 million.

Headquartered in Wesseling, Germany, LHD is a leader in firefighter turnout gear, accessories, and Total Care services, including laundry, repair, and maintenance, with an annual revenue of approximately $27 million. LHD has established a significant market presence with premium fire services products across Germany and Australia, two of the largest firefighter markets in the world, and the leading position in Hong Kong. LHD's offerings include a range of structural, wildland and industrial fire and rescue gear, technical rescue equipment, and station wear, among other products, with an emphasis on safety, innovation, and practicality to cater to the diverse needs of firefighters. LHD's customer-focused structure supports a holistic approach to protective clothing through LHD CARE, a "Total Care" offering providing sample production, repairs, and laundry services to ensure the longevity and effectiveness of its gear.‚Äč LHD has 111 employees across operations in Germany, Australia, and Hong Kong. The existing staff and management team will remain in place and continue serving customer needs.

"The acquisition of LHD accelerates our long-term growth strategy to expand our fire service market share," said Jim Jenkins, Acting CEO and Executive Chairman of Lakeland. "With a premium product portfolio, complementary geographic footprint, and Total Care service offerings, LHD provides access to attractive geographies while aligning remarkably well with Lakeland's portfolio of leading fire services brands. Additionally, the Total Care service offering provides us with an attractive recurring revenue stream that Lakeland will work to expand and leverage. We expect LHD to be immediately accretive to Lakeland following the completion of the transaction."

The transaction is expected to close in May, subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals.



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