AB Fagerhult (OM:FAG) signed a letter of intent to acquire iGuzzini illuminazione S.p.A. from Fimag-Gruppo Guzzini and TIP pre - IPO SpA on October 15, 2018. Based on this letter of intent, Fagerhult has exclusivity to conduct a customary due diligence and is targeting signing a share purchase agreement before the end of 2018. AB Fagerhult entered into an agreement to acquire iGuzzini illuminazione S.p.A. from Fimag-Gruppo Guzzini and TIP pre - IPO SpA for approximately €390 million on December 21, 2018. Under the terms, Fagerhult will acquire iGuzzini on a cash free debt free basis. 26% will be paid in new Fagerhult and 74% will be paid in cash, financed through new and existing credit facilities and a bridge loan facility. Upon finalising the transaction, the sellers will receive a significant portion of the consideration in Fagerhult shares. The transaction will be funded from a combination of debt finance and a new rights issue in Fagerhult shares. In the financial year ending December 2017, iGuzzini illuminazione had sales of approximately €230 million. Adolfo Guzzini, President of iGuzzini and Andrea Sasso, Chief Executive Officer of iGuzzini, in addition to remaining in their respective executive roles within iGuzzini, will assume important roles in the top management of Fagerhult. The finalisation of the transaction will be subject to Fagerhult Board approval and any anti-competition approvals that may be required. The shareholders meeting resolved to grant authorization to the Board of Directors to resolve on the issue of new shares to form part of the purchase price for the acquisition of iGuzzini Illuminazione S.p.A. The deal is approved by anti-competition authorities in Germany and Russia. The transaction is expected to close in first quarter of 2019. Handelsbanken Capital Markets and Alantra acted as financial advisors, PwC acted as accountant, Wesslau Söderqvist, Advokatfirman Vinge KB and Francesco Stella, Martina di Nicola, Maria Luce Piattelli and Serena Pietrosanti of Hogan Lovells acted as legal advisors to Fagerhult in the transaction. Tamburi & Associati SpA acted as financial advisor and EY acted as accountant and Hamilton Advokatbyrå acted as legal advisor to iGuzzini. Alfredo Craca, Lea Lidia Lavitola and Tania Valle of FIVELEX Studio Legale acted as legal advisors to iGuzzini, Fimag-Gruppo Guzzini and TIP pre - IPO SpA.