AB Fagerhult signed a letter of intent to buy Italian indoor and outdoor lighting products maker iGuzzini illuminazione SpA from Fimag-Gruppo Guzzini and TIP pre - IPO SpA for an undisclosed sum.

The Swedish public lighting products developer aims to sign a share purchase agreement with the sellers before the end of 2018. The deal closing will be subject to the approvals of the respective competent bodies and anti-competition authorities.

Fagerhult will finance the acquisition with debt financing and the issuance of new rights in its shares. The sellers will receive a significant portion of the consideration in Fagerhult shares in order to remain shareholders of the merged company.

IGuzzini President Adolfo Guzzini and CEO Andrea Sasso will remain at the helm and will play key roles in Fagerhult's management.

The acquisition is expected to expand Fagerhult's professional lighting product lines and geographic reach.

TIP pre - IPO is an investment affiliate of Tamburi Investment Partners SpA.