MILAN (Reuters) - Sweden’s Fagerhult (FAG.ST) has signed a letter of intent to buy Italian lighting group iGuzzini by the end of this year, iGuzzini shareholders said in a statement on Monday.
Fagerhult, which produces professional lighting for public environments such as offices and schools, plans to fund the acquisition through new debt and a rights issue, it said in a separate statement.
Both the Guzzini family and the merchant bank Tamburi Investment Partners (TIP) (TIP.MI), who currently own iGuzzini, will receive part of the consideration in Fagerhult shares, becoming investors in the merged group.
The financial details of the deal were not disclosed.
The interior design sector recently came under the spotlight when the Carlyle group and Investindustrial created a joint venture comprising a group of brands including lighting groups Flos and Louis Poulsen.
Reporting by Francesca Landini; editing by Emelia Sithole-Matarise