HUNTSVILLE, AL - Lakeland Industries , Inc. (NASDAQ:LAKE), a prominent manufacturer of protective clothing for various sectors, has announced the acquisition of professional footwear companies Jolly Scarpe S.p.A. and Jolly Scarpe Romania S.R.L. The all-cash deal, valued at approximately $9.3 million, is expected to enhance Lakeland's global fire services portfolio by adding a reputable line of footwear for first responders.
Jolly, with a workforce of 150 employees, operates out of Montebelluna, Italy, and Bucharest, Romania. Known for its innovative designs and use of modern materials, Jolly caters to the firefighting, military, police, and rescue sectors. The integration of Jolly's product range is anticipated to contribute between $14 to $16 million in sales revenue to Lakeland's fiscal year and is projected to be immediately accretive to earnings.
Acting CEO and Executive Chairman of Lakeland, Jim Jenkins, expressed that the acquisition represents a significant step in the company's expansion efforts, rounding out their offerings to fully equip firefighters. He highlighted Jolly's strong brand and reputation for quality in the growing safety market and pointed out the strategic fit for Lakeland, citing the cross-selling opportunities and enhanced geographic presence in Europe and beyond.
According to Jenkins, the acquisition aligns with Lakeland's strategy to provide comprehensive solutions to its customer base and leverage global sales and distribution channels. The current staff and management of Jolly will remain in place to maintain continuity in customer service.
Lakeland's portfolio includes industrial protective clothing and accessories sold under several global brands. The company distributes its products worldwide, reaching over 2,000 global safety and industrial supply distributors. It also serves governmental agencies and departments in various capacities.
This article is based on a press release statement.
InvestingPro Insights
As Lakeland Industries (NASDAQ:LAKE) takes a significant step in its expansion by acquiring Jolly Scarpe S.p.A. and Jolly Scarpe Romania S.R.L., the company's financial health and market performance provide investors with a clearer picture of its potential. With a market capitalization of $130.87 million and a price-to-earnings (P/E) ratio of 20.31, Lakeland demonstrates a balance between valuation and profitability. The company's commitment to maintaining a strong balance sheet is evident as it holds more cash than debt, an InvestingPro Tip that signals financial stability.
Looking ahead, analysts have a positive outlook on Lakeland's performance. The company's net income is expected to grow this year, and with liquid assets exceeding short-term obligations, Lakeland is in a good position to meet its financial commitments. The InvestingPro Tips also highlight that the company has been profitable over the last twelve months, which is corroborated by a robust gross profit margin of 41.53% as of the last twelve months ending Q3 2024. Furthermore, with a 3-month price total return of 23.64%, investors have recently seen strong returns on their investments in Lakeland.
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