Fagerhult Group

To strategically strengthen the Fagerhult Group’s position on the French and international professional lighting markets, Fagerhult Group has signed an agreement to acquire 100% of the shares in Trato SAS with its wholly-owned subsidiaries; Trato Industries SAS, T.L.V. SAS and Biolume Sarl, (the Trato TLV Group), companies all based in Lille, France. The acquisition is expected to have a positive effect on the earnings per share during 2025 and forward.

The Trato TLV Group comprises three brands; Trato, TLV and Biolume, each having a strong history and specialised expertise in the lighting industry and healthcare equipment market. The Trato TLV Group operates from 3 sites in Lille and has a strong domestic focus with the majority of sales in France.

Trato, the most significant entity, established in 1947 by Michel Picha, is a key player in retail lighting with sales of 36 MEUR. Trato also addresses the rail-underground and transportation hubs in the infrastructure sector.

TLV/Biolume, with sales of 20 MEUR, focus activities on healthcare equipment encompassing a broad range from lighting to specialised bedhead units to duct systems for medical gases. This strong position will be used to grow the sale of healthcare lighting in France.

“This family owned business is a perfect strategic fit with well-established positions in the French lighting and healthcare equipment markets. We experience the same culture as within the Fagerhult Group and I am delighted that Charley Picha and Guillaume Picha would continue to lead the business. The addition of the Trato TLV Group into Business Area Professional would create procurement synergies and we have also identified strong opportunities for domestic and international sales growth.” comments Bodil Sonesson, CEO Fagerhult Group.

“Joining the Fagerhult Group would be a great source of pride for us. This strategic alliance would allow us to accelerate the deployment of our innovative solutions in France and internationally, while preserving our key strengths: our local roots and our identity as committed French industrialists.” says Guillame Picha, President of the Trato TLV Group.

Charley Picha, MD of the Trato TLV Group adds “The Picha family would remain fully invested in the company’s strategy and leadership.”

In 2024, the Trato TLV Group had 230 employees, sales of 56 MEUR and a profitability rate that would increase the Fagerhult Group’s operating margin by 0.4 percentage points. On a proforma basis the acquisition would increase the Fagerhult Group’s Net Debt to EBITDA ratio as at the fourth quarter 2024 from 2.00x to 2.55x. The transaction is financed with existing cash and new credit facilities. The deal is expected to close during the 2nd quarter of 2025.

The completion of the transaction remains subject to the consultation of the relevant employee representative bodies of the Trato TLV Group and the approval from the relevant regulatory French authorities.

Fagerhult Group’s near and long-term targets have now been validated and approved by the Science Based Targets initiative (SBTi). The long-term target to become science-based net-zero is set to no later than 2045.

Energy-efficiency is high on the agenda to reach the climate goals and the lighting industry has a part to play. Lighting accounts for up to 15 per cent of global energy consumption and by using the latest smart lighting solutions, users can potentially reduce energy consumption by up to 90 per cent.

"We are very proud to have our targets validated and approved by the Science Based Targets initiative. This validation reaffirms our unwavering commitment to addressing climate change and ensures that our actions are grounded in science as well as consistent with the goals of the Paris Agreement. We will follow up and report on our progress continuously in a transparent way,” says Bodil Sonesson, CEO and President Fagerhult Group.

Fagerhult Group has set near and long-term goals to reduce direct and indirect GHG emissions. The near-term targets are set to reduce emissions by 70 per cent in Scope 1 and Scope 2, and by 30 per cent in Scope 3 by 2030, from the baseline year 2021. The Group has also set out a long-term science-based target to become net-zero by 2045.

“Being a Group with great passion and expertise, we are determined to work together to achieve our goal to achieve net-zero GHG emissions by 2045. We see a lot of innovative solutions and new materials across the Group, but we also know that we need to focus even more on the use phase and smart lighting. Almost 90 per cent of our emissions originate from the products being used. We have a very exciting journey ahead of us," says Bodil Sonesson.

Fagerhult Group’s sustainability agenda “Positive Change for Better Living” is an integrated part of the business strategy and daily operations. It also defines the four focus areas with long-term ambitions and defined activities; Responsible relations, Responsible operations, Circular solutions and Knowledge leader.

About the Science Based Targets initiative

The Science Based Targets initiative (SBTi) is a global body enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050.

The initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments.